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Now showing 1 - 8 of 8
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    Impact of overnment spending, debt, and growth on poverty: a cross-country analysis
    (2014-04) De Guia, Shirra Jazel L.
    This paper discusses the empirical relationship of poverty and external debt and analyzes how government spending and economic growth links both variables. Data from the World Bank and IFPRI was used to create a panel data of nine countries from South East Asia and South Asia from the year 1983 to 20 l 0. The results of the study prove that debt does have a negative impact on poverty. This negative impact can be explained by the inverse relationship of the debt service ratio and government spending as well as external debt and growth. Proper use and allocation of resources such as investment on human capital will lessen the debt burden and promote inclusive growth which will then lead to poverty reduction.
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    Government spending and endogenous growth: Time-series evidence in the case of the Philippines
    (2014-12) Nahial, Kelvin Charles; Shiraishi, Joji; Carlos, Fidelina N.
    This paper, based on the endogenous growth theory, examines the empirical evidence on the relationship between government spending and economic growth. This assumes that increasing government spending in the absence of diminishing return invariably raises the steady-state growth of an economy. Growth is primarily driven by investments on human capital which posits externalities and spillover effects on productivity. Ordinary least square (OLS) and Granger causality test were utilized in order to determine the linearity and causality of the parameters using a time-series data from 1987 through 2013. The empirical result suggests that increased share of government spending to GDP is not statistically significant in predicting per capita growth. However, the relationship is negatively linked. This paper also determines the effect of various dis-aggregated components of government spending on per capita growth. Estimated effects at the dis-aggregated level suggest that health is positively linked and defense spending is negatively related to per capita GDP growth. Expenditures on education and infrastructure are positively linked to economic growth, but both are statistically insignificant. In general, the results of this paper confirm a prior expectations based on the literature. This study has an implication for policymakers on how to allocate capital resources for optimal outcomes especially in the developing countries like the Philippines.
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    Dynamics fiscal shocks and output effects in the PHilippines: 1986-2010
    (2011-04) Dulay, Dean Gerard; Santos, PAtrick Allen; Carlos, Fidelina N.
    This paper illustrates the dynamic effects of changes in government spending and taxation on the aggregate economy from 1986 to This This work follows closely the Blanchard of Perotti and Perotti (2002) by incorporating institutional information on Vector Autoregression structural Vector Autoregression study with impact Response Function. The Impulse Response Function. The study uses quarterly macroeconomic data from the first quarter of 1986 up to the fourth quarter of 2010 and employs an output variable, a revenue variable, a The variable, and an investments variable. The results show that the response of output to spending is positive while The response of output to taxes is negative. The results also show that the effects of both spending and Turning on output are magnified using the abridged series. Turning to the effects of spending and taxes on investments, we see that both spending and tax shocks lead to negative output shocks. Keynesian theory, while The about the sign, predicts that these variables move in opposite effects. The results contrast the theory.
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    Military spending and economic growth
    (2003-10) Sy, Catherine C.; Baloaloa, Maricris C.; Tecson, Gwendolyn
    This paper determines the influence of defense expenditures and military labor on economic growth in 18 Asian countries from 1989 to 1999. The framework used is a modified Barro model that considers the institutional and military effects on economic growth. To determine whether the outcome would change significantly by altering the samples, the model is also applied to four sub-groupings: top military spenders, top aid recipients, top spenders and recipients and ASEAN countries. Empirical evidence reveals that the influence of military spending and the military use of labor on economic growth are both nonlinear. The shape of the defense burden function though, is affected by the samples used. For the entire sample of 18 countries and the first three sub-groupings, low levels of military spending have a negative influence on economic growth. As military spending continues to expand, this negative influence decreases and eventually turns positive. In addition, low levels of military labor have a positive influence on economic growth. But as more labor is taken away from the civilian sector, the net effect becomes negative. However, limiting the sample to the Southeast Asian region, generates opposite results. Low levels of military spending increase growth, but higher levels decrease it. With respect to military personnel, low levels of military labor use decrease economic growth but higher levels increase it. This discrepancy is attributed to the smaller sample size, and the fact that the ASEAN is a free trade region, proving the sensitivity of results on the sampling process used.
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    How does corruption, income and government spending affect tertiary enrollment?
    (2010-03) Alberto, Edeline O.; Desierto, Desiree
    This paper uses cross-sectional data for 70 countries to examine the effect of public spending on different levels of education and the effect of income and corruption on the tertiary enrollment. The results of the regressions showed that income and government spending on basic education have a positive effect on tertiary enrollment. Government spending in tertiary education has a greater effect in increasing enrollment in countries with low level of corruption than in countries with higher level of corruption. Also, increasing tertiary enrollment through government spending in tertiary education is more effective in countries with lower income that those with higher income.
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    The impact of government spending on rural poverty alleviation in the Philippines
    (2007-10) Cruz, Precious Anne R.; Vitug, Maria Kristina M.
    The effects of government spending on poverty have been studied in the past by individually measuring the impact of each capital investment on poverty. There is also an apparent shortage of literature about how the government, through its fiscal policy tool that is government spending, is able to reduce the poverty in the Philippines especially in the rural areas where most of the poor reside. Thus, this paper, using the framework developed by Fan and his colleagues, establishes a simultaneous equations model linking public investments in agricultural research and development, roads, education and irrigation with poverty. The results show that urbanization, development of non farm employment and increases in agricultural productivity have negative and statistically significant impact on rural poverty reduction. Of these three factors, however, agricultural productivity contributes the most to poverty alleviation. Analyzing further in terms of returns in agricultural productivity and poverty reduction, the estimates reveal that investments in agricultural R&D yield the highest marginal returns. Therefore, spending in agricultural R&D contributes the most to agricultural productivity and poverty alleviation.
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    Meeting the millennium development goal for education: can the Philippines make it?
    (2008-03) Guinto, Celeni Kristine G.; Rabe, Honlani Ruth J.
    This research studies the trends of the magnitude of Philippine government spending on education, as compared to the net enrolment rates of the country. In comparing it with the performance of other Asia-Pacific countries in their cost-effectiveness in generating educational outcomes, the research shows the likelihood of the Philippines achieving the universal primary education goal of the Millennium Development Goals. Results show that it is unlikely that the Philippines will achieve the goal by 2015, even if it adapts the expenditure-outcome elasticities of successful countries. Finally, the paper wraps up with policy suggestions to improve cost- effectiveness in the country.