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 82
- Downloads 0
Patient Satisfaction Perceived in the Emergency Department: A Quantitative Study in a State Hospital in Romania
The paper analyzes the level of satisfaction of the students as patients, who called for urgent medical services during the month of April 2017, aged between 18-30 years. Quantitative marketing analysis was used in the s...
The Forensic Accountants' Skills and Ethics on Fraud Prevention in the Nigerian Public Sector
The study investigates the required skills and ethics of the forensic accountant in preventing fraudulent practices in the Nigerian public sector. The primary source of data was utilized for data collection. Using the si...
Perceived Organizational Culture and Perceived Organizational Support on Work Engagement
The study examines the effectiveness of perceived organizational support, perceived organizational culture on work engagement among academic staff universities. The study adopts quantitative technique and utilized the us...
The Budget - Reference System in Assessing the Performance of the Public Enterprise
The objective of managers to efficiently manage their business and improve the performance of public enterprises has led to the emergence and use of budgets. These are considered to be managerial tools useful in running...
FAVAR Analysis of Foreign Investment with Capital Market Predictors: Evidence on Nigerian and Selected African Stock Exchanges
Econometrically, we analyzed role of selected African stock exchanges in welcoming FDI inflows by estimating time-varying factor augmented vector auto-regression (FAVAR) model for 2006:Q1 to 2017:Q4. Our results support...