Publication: Spending for Growth: An Empirical Evidence of Thailand
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Issued Date
2010
Resource Type
Language
eng
File Type
application/pdf
ISSN
0858-9291
Access Rights
open access
Rights
ผลงานนี้เผยแพร่ภายใต้ สัญญาอนุญาตครีเอทีฟคอมมอนส์แบบ แสดงที่มา-ไม่ใช้เพื่อการค้า-ไม่ดัดแปลง 4.0 (CC BY-NC-ND 4.0)
Rights Holder(s)
มหาวิทยาลัยศรีนครินทรวิโรฒ
Bibliographic Citation
Applied Economics Journal 17 (2): 27-44
Suggested Citation
Jirawat Jaroensathapornkul Spending for Growth: An Empirical Evidence of Thailand. Applied Economics Journal 17 (2): 27-44. Retrieved from: https://hdl.handle.net/20.500.14740/9410
Author(s)
Organization
Abstract
This article analyzes the dynamic effects of proportional change in government spending on Thailand’s economic growth. The analytical methods comprise: 1) stationarity test of time series data, 2) cointegration test between government spending and economic growth, and 3) error
correction model estimation. The results show that the expenditure variables had long-run
equilibrium relationships with the economic growth variable. The ECM estimation revealed that the financial instrument, i.e. expenditure budgeting should be further applied to drive Thailand’s
economic growth. However, the current expenditure scheme was considered unproductive. An increased expenditure proportion to enhance the quality of education was found ineffective. This study suggests that government spending focus more on research and development, to facilitate a direct improvement on human resources. Such spending regime could be expected to give a positive effect on long term growth and thus enhance the competitiveness of Thailand in the world’s economy.