Budget deficits, investment and economic growth: a panel cointegration approach
Budget deficits, investment and economic growth: a panel cointegration approach
Author(s): Goitsemodimo Abel Molocwa, Yohane Khamfula, Priviledge CheteniSubject(s): Economy, Political economy, Transformation Period (1990 - 2010), Present Times (2010 - today), Fiscal Politics / Budgeting
Published by: ТОВ “Консалтингово-видавнича компанія “Ділові перспективи”
Keywords: budget; BRICS; economic growth; panel analysis;
Summary/Abstract: This paper discusses the political economy of budget deficits among the BRICS nations between 1997 and 2016 using a panel cointegration approach to determine the long-run relationship between economic growth, budget deficits, inflation and gross investment. The results of the study show a long-run equilibrium association among economic growth and the selected variables. Furthermore, there is a positive relationship between budget deficit, inflation, and economic growth, for the period under study for BRICS countries. Lastly, the results support the view that there is bi-directional linkage from budget deficit to economic growth and vice versa.
Journal: Investment Management and Financial Innovations
- Issue Year: 15/2018
- Issue No: 3
- Page Range: 182-189
- Page Count: 8
- Language: English