Toda-Yamamoto causality test for government expenditure and economic growth: a case study in Indonesia
by Setyo Tri Wahyudi; Sigit Harjanto
J. for Global Business Advancement (JGBA), Vol. 15, No. 2, 2022

Abstract: This research aims to identify the causality between economic growth and government expenditure. Using Toda-Yamamoto Causality Test, we found a unidirectional causality between economic growth and government expenditure, in which government expenditure affects economic growth, confirming Wagner's Law. In terms of expenditure in its economic function, the relationship that supports Keynesian approach between economic growth and government expenditure is evident. However, there is no causality between other functions of government expenditure and economic growth.

Online publication date: Wed, 04-Jan-2023

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the J. for Global Business Advancement (JGBA):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com