The Effect of Government Public Expenditure on Economic Growth of Arab Spring Impacted Countries

The Arab uprisings in Tunisia, Egypt, Yemen, Libya, and Syria over the past five years represent a conundrum. Despite the previous series of economic reforms and high volumes of aid flows to governments of the Arab world during the past two decades, many Arab countries still have serious socioeconom...

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Main Author:	Mustafa, S. Almajdob
Format:	Thesis
Language:	English
Published:	2021
Subjects:	HB Economic Theory HC Economic History and Conditions HG Finance
Online Access:	http://ir.unimas.my/id/eprint/35815/8/Mustafa%20S%20Almajdob.pdf
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id	my-unimas-ir.35815
record_format	uketd_dc
spelling	my-unimas-ir.358152024-07-11T00:15:22Z The Effect of Government Public Expenditure on Economic Growth of Arab Spring Impacted Countries 2021 Mustafa, S. Almajdob HB Economic Theory HC Economic History and Conditions HG Finance The Arab uprisings in Tunisia, Egypt, Yemen, Libya, and Syria over the past five years represent a conundrum. Despite the previous series of economic reforms and high volumes of aid flows to governments of the Arab world during the past two decades, many Arab countries still have serious socioeconomic and developmental issues, mainly related to their government spending on its public expenditure. other scholars see that the low economic performance in the Arab region is thought to be associated with the “politically and economically captured system” in the region in which government tends to benefit specific groups on patronage network, leaving the needy out from the assistance system. Despite the increase in government public expenditure annually, the impact of these doesn’t goes hand in hand with its economic growth. This study examines the relationship between government spending (education, health and military) and economic growth in the Arab Spring Countries, which includes five member-states of the League of Arab States, using panel data of 15 years (2000-2014). Besides the study examine the short run and long run relationship of government public expenditure towards economic growth as well as assessing its relationships through quantile regression. Diagnostic test such Multi-collinearity tests, Heteroscedasticity test and Serial Correlation test are conducted to it tests implicitly whether a regression model is correctly specified in terms of the regressors that have been included. The study uses the panel OLS regression models; panel fixed effect model (FEM) regression and the panel random effect model (REM) regression and quantile regression model. The panel unit root test indicated that the results of the all variable are not significant at level (0) but significant at first difference I (1) at five percent, indicating that the variables employed may be co-integrated. The estimated panel data regression using panel OLS regression, FEM regression and REM regression indicated that the results of the estimated parameters were iv spurious having both autocorrelations and heteroscedasticity. The results revealed that fixed effect is appropriate model in the study indicating significant and positive relationship between the government expenditure on health and education towards economic growth. The effect of government expenditure (health, education and military) on economic growth GDP was found to be varied, though significantly positive through the quantile regression model. It suggested that when the economic growth is high, increasing the government spending might have a positive effect and stimulate economic growth. Universiti Malaysia Sarawak (UNIMAS) 2021 Thesis http://ir.unimas.my/id/eprint/35815/ http://ir.unimas.my/id/eprint/35815/8/Mustafa%20S%20Almajdob.pdf text en validuser phd doctoral Universiti Malaysia Sarawak (UNIMAS) Faculty of Economics and Business
institution	Universiti Malaysia Sarawak
collection	UNIMAS Institutional Repository
language	English
topic	HB Economic Theory HC Economic History and Conditions HG Finance
spellingShingle	HB Economic Theory HC Economic History and Conditions HG Finance Mustafa, S. Almajdob The Effect of Government Public Expenditure on Economic Growth of Arab Spring Impacted Countries
description	The Arab uprisings in Tunisia, Egypt, Yemen, Libya, and Syria over the past five years represent a conundrum. Despite the previous series of economic reforms and high volumes of aid flows to governments of the Arab world during the past two decades, many Arab countries still have serious socioeconomic and developmental issues, mainly related to their government spending on its public expenditure. other scholars see that the low economic performance in the Arab region is thought to be associated with the “politically and economically captured system” in the region in which government tends to benefit specific groups on patronage network, leaving the needy out from the assistance system. Despite the increase in government public expenditure annually, the impact of these doesn’t goes hand in hand with its economic growth. This study examines the relationship between government spending (education, health and military) and economic growth in the Arab Spring Countries, which includes five member-states of the League of Arab States, using panel data of 15 years (2000-2014). Besides the study examine the short run and long run relationship of government public expenditure towards economic growth as well as assessing its relationships through quantile regression. Diagnostic test such Multi-collinearity tests, Heteroscedasticity test and Serial Correlation test are conducted to it tests implicitly whether a regression model is correctly specified in terms of the regressors that have been included. The study uses the panel OLS regression models; panel fixed effect model (FEM) regression and the panel random effect model (REM) regression and quantile regression model. The panel unit root test indicated that the results of the all variable are not significant at level (0) but significant at first difference I (1) at five percent, indicating that the variables employed may be co-integrated. The estimated panel data regression using panel OLS regression, FEM regression and REM regression indicated that the results of the estimated parameters were iv spurious having both autocorrelations and heteroscedasticity. The results revealed that fixed effect is appropriate model in the study indicating significant and positive relationship between the government expenditure on health and education towards economic growth. The effect of government expenditure (health, education and military) on economic growth GDP was found to be varied, though significantly positive through the quantile regression model. It suggested that when the economic growth is high, increasing the government spending might have a positive effect and stimulate economic growth.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Mustafa, S. Almajdob
author_facet	Mustafa, S. Almajdob
author_sort	Mustafa, S. Almajdob
title	The Effect of Government Public Expenditure on Economic Growth of Arab Spring Impacted Countries
title_short	The Effect of Government Public Expenditure on Economic Growth of Arab Spring Impacted Countries
title_full	The Effect of Government Public Expenditure on Economic Growth of Arab Spring Impacted Countries
title_fullStr	The Effect of Government Public Expenditure on Economic Growth of Arab Spring Impacted Countries
title_full_unstemmed	The Effect of Government Public Expenditure on Economic Growth of Arab Spring Impacted Countries
title_sort	effect of government public expenditure on economic growth of arab spring impacted countries
granting_institution	Universiti Malaysia Sarawak (UNIMAS)
granting_department	Faculty of Economics and Business
publishDate	2021
url	http://ir.unimas.my/id/eprint/35815/8/Mustafa%20S%20Almajdob.pdf
_version_	1804888411326119936

The Effect of Government Public Expenditure on Economic Growth of Arab Spring Impacted Countries

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