{"title":"Investigation of the Relationship between Government Expenditure and Country\u2019s Economic Development in the Context of Sustainable Development","authors":"Lina Sinevi\u010dien\u0117","volume":99,"journal":"International Journal of Economics and Management Engineering","pagesStart":749,"pagesEnd":754,"ISSN":"1307-6892","URL":"https:\/\/publications.waset.org\/pdf\/10000637","abstract":"
Arising problems of countries’ public finances, social
\r\nand demographic changes motivate scientific and policy debates on
\r\npublic spending size, structure and efficiency in order to meet the
\r\nchanging needs of society and business. The concept of sustainable
\r\ndevelopment poses new challenges for scientists and policy-makers
\r\nin the field of public finance. This paper focuses on the investigation
\r\nof the relationship between government expenditure and country’s
\r\neconomic development in the context of sustainable development.
\r\nEmpirical analysis focuses on the data of the European Union (except
\r\nCroatia and Luxemburg) countries. The study covers 2003 – 2012
\r\nyears, using annual cross-sectional data. Summarizing the research
\r\nresults, it can be stated that governments should pay more attention to
\r\nthe needs that ensure sustainable development in the long-run when
\r\nformulating public expenditure policy, particularly in the field of
\r\nenvironment protection.<\/p>\r\n","references":"[1] J. M. Harris, \u201cBasic principles of sustainable development,\u201d Global\r\nDevelopment and Environment Institute, Working Paper no. 00\u201304,\r\n2000.\r\n[2] U. Pisano, A. Martinuzzi, and B. Bruckner, \u201cThe financial sector and\r\nsustainable development: logics, principles and actors,\u201d European\r\nSustainable Development Network (ESDN), Quarterly Report no. 27,\r\nDecember 2012.\r\n[3] T. Uryszek, \u201cPublic finance crisis and sustainable development\r\nfinancing \u2013 evidence from EU economies,\u201d Copernican Journal of\r\nFinance & Accounting, vol. 3, no. 1, pp. 161\u2013173, 2014.\r\n[4] L. Sineviciene, and A. Vasiliauskaite, \u201cFiscal policy interaction with\r\nprivate investment: the case of the Baltic States,\u201d Inzinerine Ekonomika-\r\nEngineering Economics, vol. 23, no. 3, pp. 233-241, 2012.\r\n[5] S. Lamartina, and A. Zaghini, \u201cIncreasing public expenditures:\r\nWagner's law in OECD countries,\u201d CFS Working Paper, no. 2008\/13,\r\n2008.\r\n[6] C. Alexiou, \u201cGovernment spending and economic growth: econometric\r\nevidence from the South Eastern Europe,\u201d Journal of Economic and\r\nSocial Research, vol. 11, no. 1, pp. 1-16, 2009.\r\n[7] N. Bayraktar, and B. Moreno-Dodson, \u201cHow can public spending help\r\nyou grow? An empirical analysis for developing countries,\u201d Policy\r\nResearch Working Paper 5367, The World Bank, July 2010.\r\n[8] M. Taiwo, and T. Abayomi, \u201cGovernment expenditure and economic\r\ndevelopment: empirical evidence from Nigeria,\u201d European Journal of\r\nBusiness and Management, vol. 3, no.9, pp. 18-28, 2011.\r\n[9] M. A. Oyinlola, and O. Akinnibosun, \u201cPublic expenditure and economic\r\ngrowth nexus: Further evidence from Nigeria,\u201d Journal of Economics\r\nand International Finance, vol. 5, no. 4, pp. 146-154, July 2013.\r\n[10] M. S. Dinc\u0103, and G. Dinc\u0103, \u201cThe impact of government expenditures\r\nupon economic growth in post-communist countries,\u201d Scientific Annals\r\nof the \u201eAlexandru Ioan Cuza\u201d University of Ia\u015fi Economic Sciences,\r\nvol. 60, no. 1, pp. 83-92, 2013.\r\n[11] S. Martins, and F. J. Veiga, \u201cGovernment size, composition of public\r\nexpenditure, and economic development,\u201d International Tax and Public\r\nFinance, vol. 21, no. 4, pp 578-597, August 2014.\r\n[12] European Commission, Eurostat database, 2014.\r\n[13] K. Blackburn, N. Bose, and M. E. Haque, \u201cpublic expenditures,\r\nbureaucratic corruption and economic development,\u201d The Manchester\r\nSchool, vol. 79, no. 3, pp. 405\u2013428, June 2011.\r\n[14] A. S. Rajkumar, and V. Swaroop, \u201cPublic spending and outcomes: Does\r\ngovernance matter?,\u201d Journal of Development Economics, vol. 86, pp.\r\n96\u2013111, 2008.","publisher":"World Academy of Science, Engineering and Technology","index":"Open Science Index 99, 2015"}