Publication:
The Effects of Public Expenditure on Economic Growth in Asian Countries : A Bayesian Model Averaging approach
The Effects of Public Expenditure on Economic Growth in Asian Countries : A Bayesian Model Averaging approach
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Date
2019
Authors
Phạm Thị Hà An
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Research Projects
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Abstract
The impact of public expenditure on economic growth is a topic
that has been of great interest to many researchers, e.g., [1],
[10], [14], [23], [33]. However, the studies on this impact illus-
trate that the results are inconsistent. Besides, certain explana-
tory variables which should be included in the model were not
speci ed. This ambiguity a ects the reliability of the results.
Using Bayesian Model Averaging (BMA) method with the data
obtained from 43 Asian countries in the period 2004-2016, we
estimate the impact of public expenditure on economic growth
with a large number of explanatory variables included in the
model. The research results show that public expenditure has
a negative impact on the economic growth in Asian countries.
On the other hand, the components of public expenditure have
a weak impact on economic growth. The empirical results con-
rm that since the majority of Asian countries are developing
countries with a large proportion of state-owned sectors and
low governance quality, large scale of public expenditure does
not have positive e ects on the economic growth. Based on the
research results, this study provides policy implications to im-
prove governance quality and e ciency of public expenditures
in Asian countries.
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Keywords
"Bayesian model averaging,
Eco- nomic growth,
Public expendi- ture"