Does Government Expenditure Enhance or Hinder Economic Development? Case Study of Some Arab Countries

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Published: Mar 31, 2024

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Keywords:
Government spending, economic development, growth rate,
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DOI:10.25130/tjaes.20.65.2.16
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Safa Faisal Saeed
College of Administration and Economics/University of Mosul
safafaisal38@gmail.com
Mufeed D. Y. Amula-Dhanoon
College of Administration and Economics/University of Mosul
dr.mufeed@uomosul.edu.iq

DOI:https://doi.org/10.25130/tjaes.20.65.2.16

Abstract

The study aims to demonstrate the effect of government size on economic development in Arab countries, as it is interested in understanding the complex relationship between government intervention in the economy and its impact on the rate of per capita income growth in these countries. The study shows that this relationship is depends on several factors, including the economic and social context of the country and how government expenditure is directed in the country. Increasing government expenditure may have a positive effect on economic development, or it may have negative effect. Panel data were used for a group of Arab countries (Bahrain, Algeria, Tunisia, Egypt, Jordan, Lebanon, Oman, Saudi Arabia, Morocco, and Iraq) for the period 1991-2021. Using ARDL method to demonstrate the impact of government size on economic development in Arab countries and adopting appropriate mathematical methods to determine the optimal size of government. The study found that the size of the government positively affects economic development. This effect takes the form of a bell, and thus the result is consistent with the Armey curve method.

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How to Cite
Safa Faisal Saeed, & Mufeed D. Y. Amula-Dhanoon. (2024). Does Government Expenditure Enhance or Hinder Economic Development? Case Study of Some Arab Countries. Tikrit Journal of Administrative and Economic Sciences, 20(65, part 2), 294–313. https://doi.org/10.25130/tjaes.20.65.2.16
Issue
Vol. 20 No. 65, part 2 (2024): Vol.20, No.65, Part 2, 2024
Section
Articles

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