Assumed liabilities, government spending and economic growth
Date
2006-10
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Abstract
This paper investigates the impact of government debt servicing on assumed liabilities on economic growth over a sample period of 1988 to 2004. Ordinary Least Squares estimation (OLS) is applied to the model. The estimation results show that government spending on assumed liabilities has a negative and significant effect on economic growth, at least at the mean levels of assumed liabilities. On the other hand, private investment has a positive and significant effect on economic growth. Population growth is statistically insignificant in the model.
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Keywords
Liabilities, Government expenditure, Economic growth, Public fund, Public debt