Government contractors the segments of the organization based on the beneficial or causal relationship between such expenses and the receiving segments. This paper applies the technique of granger causality to determine the relationship between total government expenditures and total tax revenue using annual revised estimates the analysis discovers a firm unidirectional effect from expenditure to revenue suggesting the preference of controlling the. Causal relationship between revenue allocation and economic revenue from these oil output has cumulated to the cruz of federal government revenue for over.
Government revenue, expenditure, and national income: a granger causal analysis of the case of taiwan by comparing this found pattern of causal relationships. Purpose - understanding the relationship between government revenue and government expenditure is important from a policy point of view, especially for a country like fiji, which is suffering from persistent budget deficits. Relationship between government tax revenue and economic growth is important from a policy point of view, especially for a country like zimbabwe, which is suffering from persistent budget deficits, retarded economic. Both maximum eigen value and the trace test confirm that the existence of one cointegrating vector between government revenue and spending, and government revenue and recurrent expenditure hence there is a stable relationship.
Evidence for the existence of a long-run relationship between tax revenues and government spending with unidirectional and bidirectional causality in var models for the sample period 1970-2006 jel : c01, h20, h59. The study examines the causal relationship that exists between government spending and economic growth in south africa using ols regression techniques secondary data obtained from the sarb is. Unsatisfied with little evidence provided on various hypotheses concerning the revenue-expenditure relation in china, this paper is an empirical endeavour to fi.
The main purpose of the study is to examine the causal relationship between government revenues and expenditures of the jordan government over the period from 1990 to 2011 using granger causality and vecm tests methodology. The causal relationship between government expenditure and tax revenue in barbados tracy maynard & kester guy abstract solving the budget deficit problem is a concern for many countries. The causal relationship between revenues and government expenditure is a classic problem of public economics there are four propositions that can potentially explain observed spending.
There is a bidirectional causal relationship between government expenditure and revenues in both the long run and short run al-qudair (2005) and elyasi1 and rahimi (2012) however, could not. The causal relationship between government revenue and expenditure has remained an empirically debatable relationship between federal government revenues and. Explain the positive causal relationship between price and quantity supplied the government will gain revenue ib economics hl - microeconomics. Conducted on the relations between government expenditure and government revenue due to its the existence of this type of causal relationship was confirmed in.
Business perspectives - scientific journals publishing your request has been successfully sent. Economists have been puzzled by this relationship, specifically, whether it is government expenditure that influences government tax revenue or vice versa therefore, the objective of this study was to examine the causal relationship between government expenditure and revenue in kenya. Int j manag bus res, 5 (2), 117-127, spring 2015 119 run relationship between oil revenue and government expenditures yousef and mohammad (2012) investigate.