Effect of Capital Expenditure on Socio-Economic Development of Libya from 1970 to 2005

The effects of government expenditure and its size have stimulated controversy in macro economics in recent time especially on a long run economic growth. Public expenditure policies respecting sound government finances are key to fostering growth and preserving macroeconomic stability because publi...

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Main Author:	Al-Jetlawi, Fatma T. Elgadi
Format:	Thesis
Language:	eng eng
Published:	2012
Subjects:	HG Finance HC Economic History and Conditions
Online Access:	https://etd.uum.edu.my/3241/1/FATMA_T.ELGADI_ALJETLAWI.pdf https://etd.uum.edu.my/3241/2/FATMA_T.ELGADI_ALJETLAWI.pdf
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id	my-uum-etd.3241
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Lim, Hock Eam
topic	HG Finance HC Economic History and Conditions
spellingShingle	HG Finance HC Economic History and Conditions Al-Jetlawi, Fatma T. Elgadi Effect of Capital Expenditure on Socio-Economic Development of Libya from 1970 to 2005
description	The effects of government expenditure and its size have stimulated controversy in macro economics in recent time especially on a long run economic growth. Public expenditure policies respecting sound government finances are key to fostering growth and preserving macroeconomic stability because public expenditure supports growth via public services. Libyan government expenditure has been on the increase for some time now. The problem is how effective (in terms of stimulating economic growth) are the government expenditure and what we the causes of this increasing government expenditure.This paper is based on an economic analysis of Libya's capital expenditure on socio-economic development during the period 1970-2005. In addition, the research is aimed at finding the causes of the increase in Libya's government expenditure from 1970 to 2005 and what is going to be the impact of such increase on the economic growth. The data is sourced from annual report of Central Bank of Libya from the period of 1970-2005. In addition, to estimate the effect of government expenditure on economic growth, the Error Correction and Granger Causality Model are estimated (for effect of economic growth on government expenditure as well). The findings indicate that no consistent evidence that changes in government spending has an impact on per capita real output growth. The flow of causality seems to be running in the other direction from output growth to government spending. Therefore, an important implication of the analysis for the conduct of public policy in Libya is that the government can face its deficit by shrinking its size and limiting its role in the economy.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Al-Jetlawi, Fatma T. Elgadi
author_facet	Al-Jetlawi, Fatma T. Elgadi
author_sort	Al-Jetlawi, Fatma T. Elgadi
title	Effect of Capital Expenditure on Socio-Economic Development of Libya from 1970 to 2005
title_short	Effect of Capital Expenditure on Socio-Economic Development of Libya from 1970 to 2005
title_full	Effect of Capital Expenditure on Socio-Economic Development of Libya from 1970 to 2005
title_fullStr	Effect of Capital Expenditure on Socio-Economic Development of Libya from 1970 to 2005
title_full_unstemmed	Effect of Capital Expenditure on Socio-Economic Development of Libya from 1970 to 2005
title_sort	effect of capital expenditure on socio-economic development of libya from 1970 to 2005
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2012
url	https://etd.uum.edu.my/3241/1/FATMA_T.ELGADI_ALJETLAWI.pdf https://etd.uum.edu.my/3241/2/FATMA_T.ELGADI_ALJETLAWI.pdf
_version_	1747827528879308800
spelling	my-uum-etd.32412022-04-10T06:05:59Z Effect of Capital Expenditure on Socio-Economic Development of Libya from 1970 to 2005 2012-01 Al-Jetlawi, Fatma T. Elgadi Lim, Hock Eam Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance HC Economic History and Conditions The effects of government expenditure and its size have stimulated controversy in macro economics in recent time especially on a long run economic growth. Public expenditure policies respecting sound government finances are key to fostering growth and preserving macroeconomic stability because public expenditure supports growth via public services. Libyan government expenditure has been on the increase for some time now. The problem is how effective (in terms of stimulating economic growth) are the government expenditure and what we the causes of this increasing government expenditure.This paper is based on an economic analysis of Libya's capital expenditure on socio-economic development during the period 1970-2005. In addition, the research is aimed at finding the causes of the increase in Libya's government expenditure from 1970 to 2005 and what is going to be the impact of such increase on the economic growth. The data is sourced from annual report of Central Bank of Libya from the period of 1970-2005. In addition, to estimate the effect of government expenditure on economic growth, the Error Correction and Granger Causality Model are estimated (for effect of economic growth on government expenditure as well). The findings indicate that no consistent evidence that changes in government spending has an impact on per capita real output growth. The flow of causality seems to be running in the other direction from output growth to government spending. Therefore, an important implication of the analysis for the conduct of public policy in Libya is that the government can face its deficit by shrinking its size and limiting its role in the economy. 2012-01 Thesis https://etd.uum.edu.my/3241/ https://etd.uum.edu.my/3241/1/FATMA_T.ELGADI_ALJETLAWI.pdf text eng public https://etd.uum.edu.my/3241/2/FATMA_T.ELGADI_ALJETLAWI.pdf text eng public masters masters Universiti Utara Malaysia Abdullah HA, (2000) The Relationship between Government Expenditure and Economic Growth in Saudi Arabia. Journal of Administrative Science, 12(2): 173-191. Abu-Bader S, Abu-Qarn AS, 2003. Government Expenditures, Military Spending and Economic Growth: Causality Evidence from Egypt, Israel, and Syria. Journal of Policy Modeling, 25(6-7): 567-583. Afonso,A. and Gomes P. (2008),"Some Determinants of Public and Private Sector Wages", Mimeo: ECB. 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(2006) EU: Causes of Growth differentials in Europe A Tax Policy for Growth and Jobs (online) http://workforall.net retrieved on November 10th 2011 Mitchell J.D (2005). The Impact of Government Spending on Economic Growth. Backgrounder, 1831. [www.heritage.org/ research/budget/bg1831.cfm] Mobbs P. (2002).Mineral Industry. Libya. Nurudeen.A. Abdullahi U. (2010) Government Expenditure and Economic Growth in Nigeria, 1970-2008 : A Disaggregated Analysis Department of Economics, University of Abuja, PMB 117, Nigeria Business and Economics Journal. Volume: BEJ-4 Ostenvald-Lenum,M., (1992),"A Note with Quantiles of the Asymptotic Distribution of the Maximum Likelihood Cointegration Rank Test Statistics," Oxford Bulletin of Economics and Statistics, 54, pp.461-472. Pilat,D. (2000) Innovation and productivity in Services- State of the Art, Organization, Economic Cooperation and Development, Directorate for science, Technology and Industry, Paris Rahuma A. 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USA Department of Commerce (1997) Libya, Export Control Program, Description and Licensing Policy, Section 746.4 Wilkinson,B., (2002) Establishing a Presence, in Marat Terterov and Jonathan Wallace, doing business with Libya, P.57. World Bank (2006) Tracking Basic expenditures in Yemen: Analyses of Public resource management and Teacher Absenteeism. Social Economic Development Group, Middle East and North African region

Effect of Capital Expenditure on Socio-Economic Development of Libya from 1970 to 2005

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