Record Details

Does Government Expenditure Reduce GDP Gap? Evidence from Bangladesh

Journal of Nepalese Business Studies

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Field Value
 
Title Does Government Expenditure Reduce GDP Gap? Evidence from Bangladesh
 
Creator Islam, M. Rafiqul; University of Rajshahi, Rajshahi
Hassan, A.F.M. Kamrul
 
Subject Education
gross national product; GDP gap; output gap
Economics
 
Description In Keynesian macroeconomics fiscal policy plays the dominant role to steer the economy along its long run equilibrium path and also to cure the short run deviation from its long run level. Present paper examines this role of government expenditure, a tool of fiscal policy, in the context of the economy of Bangladesh. The paper employs cointegration and Error Correction Mechanism (ECM) to examine the short and long run relationship between economic growth and government expenditure. Findings of the study indicate that, in the short run, government expenditure does not play any statistically significant role in eliminating the gap between actual and potential output. However, a statistically significant cointegrating relationship is found between government expenditure and long run equilibrium output

Journal of Nepalese Business Studies 2006/III/1 pp. 1-8
 
Publisher Faculty of Management Prithivi Narayan Campus
 
Date 2007-03-25
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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cointegration and error correction method
 
Format application/pdf
 
Identifier https://www.nepjol.info/index.php/JNBS/article/view/478
10.3126/jnbs.v3i1.478
 
Source Journal of Nepalese Business Studies; Vol 3, No 1 (2006); 1-8
2350-8795
 
Language eng
 
Relation https://www.nepjol.info/index.php/JNBS/article/view/478/466
 
Coverage Bangladesh