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Spending for Growth: An Empirical Evidence of Thailand

Applied Economics Journal

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Field Value
 
Title Spending for Growth: An Empirical Evidence of Thailand
 
Creator Jaroensathapornkul, Jirawat
 
Description AbstractThis article analyzes the dynamic effects of proportional change in government spending on Thailand’s economic growth. The analytical methods comprise: 1) stationarity test of time series data, 2) cointegration test between government spending and economic growth, and 3) errorcorrection model estimation. The results show that the expenditure variables had long-runequilibrium relationships with the economic growth variable. The ECM estimation revealed that the financial instrument, i.e. expenditure budgeting should be further applied to drive Thailand’seconomic growth. However, the current expenditure scheme was considered unproductive. An increased expenditure proportion to enhance the quality of education was found ineffective. This study suggests that government spending focus more on research and development, to facilitate a direct improvement on human resources. Such spending regime could be expected to give a positive effect on long term growth and thus enhance the competitiveness of Thailand in the world’s economy.Keywords : government spending, economic growth, error correction modelJEL Classification : E62, H50, H52
 
Publisher The Center for Applied Economics Research (CAER)
 
Date 2013-07-25
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://tci-thaijo.org/index.php/AEJ/article/view/10442
 
Source Applied Economics Journal; Vol 17 No 2 (2010): December; 27-44
2586-9132
2586-9124
 
Language eng
 
Relation http://tci-thaijo.org/index.php/AEJ/article/view/10442/9440
 
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http://creativecommons.org/licenses/by-nc-nd/4.0