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Estimation of the optimal size of government spending in Syria by using ARMEY curve and ARDL methodology

Journal of Administrative and Economics Science

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Title Estimation of the optimal size of government spending in Syria by using ARMEY curve and ARDL methodology
 
Creator Almosabbeh, Imadedin Ahmad
 
Description This research aims at estimating the optimal size of government spending in Syria. Theresearcher used Armey curve methodology from the econometrics side, and the AutoregressiveDistributed Lag (ARDL) methodology from the statistical side. The study reviewed literature related toresearch at the national and regional level, where these studies shows that there is a non-linearrelationship between government spending and economic growth, this relationship is inverted bell shape.The researcher used World Bank data on Syria in order to estimate the non-linear quadratic functionbetween the government spending and the real economic growth. The results of the estimation are asexpected. the sign of parameter of the rate of government spending is positive, while the sign of squaredof the rate of government spending is negative and significant, which indicates that the relationshipbetween growth and government spending in Syria can be represented by a parabola with an inverted bellshape (Armey Curve). The results also show that the optimal size of government spending is 16.5% andthe limit of the positive impact of this spending is located within the domain [0.144, 0.2262]. The studyrecommend the financial and economic policy maker in Syria that they must keep the rate of governmentspending in this area, with the persistent attempt to oncoming the rate of the optimal size (16.5%).Key words: the optimal size of government spending, Armey curve, ARDL Method, economic growth,the rate of government spending s.
 
Publisher Qassim University Academic Publishing and translation
 
Contributor —
 
Date 2014-12-14
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://publications.qu.edu.sa/ojs/index.php/economic/article/view/915
 
Source Journal Of Administrative And Economics Science; Vol 7, No 1
 
Language eng
 
Relation http://publications.qu.edu.sa/ojs/index.php/economic/article/view/915/868