The Impact of Government Expenditure on Economic Growth in the Palestinian Territories: An Econometric Study During The Period of 1995-2013

Authors

  • د. عمر محمود أبو عيدة

Keywords:

government expenditure, economic growth, government current expenditure, government developmental expenditure, Econometric Study, Palestinian Territories

Abstract

The aim of this research is to determine the causal relationship between

government expenditure and economic growth measured by the real GDP

during the period (1995- 2013) in the Palestinian territories. To achieve this

goal the research adopted a descriptive statistical approach to analyze the

development of the government expenditure and the real GDP in Palestine.

The researcher also adopted various econometric models to study the impact

of the government expenditure on economic growth. The official data which

has been published by the Palestinian Central Bureau of Statistics was used

to perform the econometric. Many empirical results were found, but the most

important ones are: there is a positive casual relationship between the real

GDP and the total current and developmental expenditure of the government.

On the other hand, there is a positive casual relationship between both the total

expenditure and the current expenditure with the real GDP. The empirical

result does not prove the same result regarding the developmental expenditure.

To confirm the mentioned empirical, the results of the econometric tests show

a statistical significance at 1% level between both the total expenditure and

the current expenditure with the real growth of the GDP. On the contrary,

relationship between the developmental expenditure and economic growth

does not gain any statistical significance. Finally, several recommendations

were proposed which would raise the efficiency of the government expenditure

in achieving economic growth in the Palestinian territories.

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Published

2017-05-16

How to Cite

أبو عيدة د. ع. م. (2017). The Impact of Government Expenditure on Economic Growth in the Palestinian Territories: An Econometric Study During The Period of 1995-2013. Al-Quds Open University for Administrative & Economic Research & Studies, 1(3). Retrieved from https://journals.qou.edu/index.php/eqtsadia/article/view/279

Issue

Vol. 1 No. 3 (2015): المجلد الأول، ع(3)، شعبان 1436هـ/حزيران 2015م

Section

الأبحاث

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