Does the Budget Expenditure Composition Matter for Long-Run Economic Growth in a Resource Rich Country? Evidence from Azerbaijan
Journal Title: Academic Journal of Economic Studies - Year 2016, Vol 2, Issue 2
Abstract
This study investigates the role of budget expenditure composition over Azerbaijan’s non-oil economic growth in the long-run by classifying public spending as capital, social and other expenditures. Authors’ employ ARDLBT approach to co-integration for the period of 2000Q1-2014Q4 to estimate long-run contribution of each spending category before-and-after the oil boom while controlling for oil related factors. Empirical results endorse the validity of long-run association among variables. Results concluded insignificant negative impact of capital expenditures, and significant negative impact of other expenditures. However, social spending has statistically and economically strong positive impact over the non-oil output growth. Therefore, research findings confirm that public expenditure composition significantly matters for long-run non-oil economic growth, and social expenditures have the greater positive impact in a resource-rich economy, Azerbaijan. Research results are highly useful for the government officials to consider while planning the expenditures in order to minimize negative response of non-oil sector to the fiscal contraction.
Authors and Affiliations
Khatai Aliyev, Ceyhun Mikayilov
Keywords
Related Articles
- EP ID EP177954
- DOI -
- Views 80
- Downloads 0
Determinants of Foreign Direct Investments in Bulgaria and Romania in the Context of Recent Economic Crisis
The objective of this paper is to select some relevant macroeconomic determinants for foreign direct investment (FDI) in Bulgaria and Romania since the start of the recent economic crisis (2008-2015). Even if the economi...
Effects of Capital Structure and Profitability on Corporate Value with Company Size as the Moderating Variable of Manufacturing Companies Listed on Indonesia Stock Exchange
This study aims to determine the effect of capital structure and profitability on the corporate value by company size as the moderating variable on manufacturing companies listed on Indonesia Stock Exchange from 2012 to...
Some Particularities of Rural Tourism Management in Romania through Indirect Quantification
Rural tourism represents a major factor in the Romania's economic transformation conditioned by the affirmation force to the requirements of the market's economy. It began to assert in the Romanian society as a form of e...
Returns Effect, Shocks and Volatility Transmission between Foreign Exchange-Stock Markets in Nigeria
The paper examined effect of passed return on current return, shocks spillover and volatility transmission between FX-Stock markets. Using result obtained from VAR-GARCH models, we also calculate the optimal weight and r...
The Influence of Strategic Alternatives on the Increasing Level Value of the Term Deposits
This article analyses the influence of the strategic alternative on the value level increase of the term deposits attracted from the Romanian’s population households, during the period 2012 – Q1/2015, depending on the ch...