Structural trends of General Government Expenditure in the Baltic and Scandinavian countries

Gitana Dudzevičiūtė, Rima Tamošiūnienė

Abstract


This paper has analyzed the patterns of government expenditure in the Baltic countries (Lithuania, Latvia and Estonia), comparing them with those in Scandinavian countries (Denmark, Finland and Sweden). The investigation has summarized the tendencies of structural changes of government expenditure and extent to which countries expenditure structures have been dissimilar in a period of 2004 – 2013. Breakdowns of these expenditures on the basis of the activities they support have been provided and analyzed. The authors have done this by looking both at general government expenditure statistics, and also by considering a number of descriptive statistical indicators. Firstly, based on the statistical data, structural changes of government expenditure have been analyzed. To this end, the indicators of   absolute structural changes and intensity of structural changes have been applied. Secondly, Finger-Kreinin index has been calculated in order to compare government expenditure patterns and determine their dissimilarities.

Full Text:

2015-2-02.pdf

References


Abu, N., Abdulahi, U. 2010.Government expenditure and economic growth in Nigeria, 1970-2008: a disaggregated analysis. Business and Economic Journal 4 (3): 237-330.

Aye, G.C.; Balcilar, M.; Dunne, J.P.; Gupta, R.; Eyden, R.V. 2014. Military expenditure, economic growth and structural Instability: a case study of South Africa. Defence and Peace Economics 25 (6): 619–633. Available on the Internet: http://dx.doi.org/10.1080/10242694.2014.886432.

Alexiou, C. 2009. Government spending and economic growth: econometric evidence from the South Eastern Europe. Journal of Economic and Social Research 11(1):1-16.

Alptekin, A.; Levine, P. 2012. Military expenditure and economic growth: a meta-analysis. European Journal of Political Economy 28: 636-650.

Anwar, M.A.; Rafique, Z.; Joiya, S.A. 2012.Defense spending-economic growth nexus: a case study of Pakistan. Pakistan Economicand Social Review 50 (2): 163-182.

Arpaia, A., Turrini, A. 2008. Government expenditure and economic growth in the EU: long-run tendencies and short-term adjustment, Economic Papers 300. European Commission.

Atesoglu, H.S. 2009. Defense spending and aggregate output in the United States. Defence and Peace Economics 20 (1): 21–26.

Barro, Robert J., Charles J. R. 2011. Macroeconomic effects from government purchases and taxes. Quarterly Journal of economics 126(1): 51–102.

Bataineh, I. M. 2012. The impact of government expenditures on economic growth in Jordan, Interdisciplinary Journal of Contemporary Research in Business 4 (6):1320-1338.

Cоrtuk, О.; Singh, N. 2010. Structural changes and grоwth in India. Ecоnоmics Letters 2: 178-181.

Danek, T. 2013. Analysis of relationship between military expenditure and economic growth. The Business and Management Review 3(3): 51-57.

Dimitraki, O.; Ali, F. M. 2013. The long-run causal relationship between military expenditure and economic growth in China: revisited. Defence and Peace Economics 24: 1-16. Available on the Internet: http://dx.doi.org/10.1080/10242694.2013.810024.

Dudzevičiūtė, G. 2013. Lithuanian manufacturing trends in the context of developed and developing countries. Journal of Entrepreneurship and Sustainability Issues 1 (1): 55-66.

Dudzevičiūtė, G., Mačiulis, A., Tvaronavičienė, M. 2014. Structural changes of economies: Lithuania in the global context. Technological and Economic Development of Economy 20 (2): 339-356.

Dunne, J.P.; Tian, N. 2015. Military expenditure, economic growth and heterogeneity. Defence and Peace Economics 26 (1): 15–31. Available on the Internet: http://dx.doi.org/10.1080/10242694.2013.848575.

Eurostat database (general government expenditure by function). 2015. Available on the internet: http://ec.europa.eu/eurostat/data/database.

Feridun, M.; Sawhney, B.; Shahbaz, M. 2011. The impact of military spending on economic growth: the case of North Cyprus. Defence and Peace Economics 22 (5): 555-562.

Freysson. L. 2012. General government expenditure: analysis by detailed economic function, Statistics in Focus 33,Eurostat.

Gomez, M.A. 2008. Fiscal policy, congestion, and endogenous growth, Journal of Public Economic Theory 10: 595–622.

Hall, Robert E., 2009. By how much does GDP rise if the government buys more output? Brookings Papers on Economic Activity Fall: 183–236.

Irmen, A., Kuehnel, J. 2009. Productive government expenditure and economic growth, Journal of Economic Surveys 23 ( 4): 692–733.

Khalid, M.A.; Mustapha, A.B. 2014. Long-run relationship and causality tests between military expenditure and economic growth in India. The Economics and Finance Letters 1(6): 49-58.

Mehmood, R., Sadiq, S. 2010. The relationship between government expenditure and poverty: a cointegration analysis, Romanian Journal of Fiscal Policy 1 (1): 29-37.

Memedоvic, О; Iapadre, L. 2010. Structural change in the wоrld ecоnоmy: main features and trends. UNIDО, Wоrking Paper (24). 62 p.

OECD (2014). National Accounts at a Glance 2014, OECD Publishing. 143 p. Available on the Internet:

http://dx.doi.org/10.1787/na_glance-2014-en

Pappa, E. 2009. The effects of fiscal shocks on employment and the real wage, International Economic Review 50: 400–421.

Patricia, C. N., Izuhukwu, C. D. 2013. Impact of government expenditure on economic growth in Nigeria, International Journal of Business and Management Review 1(4): 64-71.

Ramey, Valerie A. 2011. Can government purchases stimulate the economy?, Journal of Economic Literature 49(3): 673–85.

Taiwo, M., Abayomi, T. 2011. Government expenditure and economic development: empirical evidence from Nigeria, MPRA Paper No 37293. Available on the Internet: http://mpra.ub.uni-muenchen.de/37293/

Zhu, Q.,Wang, X. 2011. Structural changes of public expenditures in China, Journal of Public Budgeting, Accounting & Financial Management 23 (4): 569-587.


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

ISSN 1313-4787 (Print)
ISSN 2367-5403(Online)