- Autor
- Hasanov Fakhri F. (King Abdullah Petroleum Studies and Research Center, Saudi Arabia; George Washington University, USA; Azerbaijan National Academy of Sciences), Mikayilov Jeyhun I. (King Abdullah Petroleum Studies and Research Center, Saudi Arabia; Institute for Scientific Research on Economic Reforms, Azerbaijan; Azerbaijan State University of Economics), Yusifov Sabuhi (Azerbaijan Technology University), Aliyev Khatai (Azerbaijan State University of Economics; Baku Engineering University, Azerbaijan; ASERC, Baku, Azerbaijan), Talishinskaya Samra (OJSC The International Bank of Azerbaijan, Azerbaijan; ADA University, School of Economics, Azerbaijan)
- Tytuł
- The Role of Social and Physical Infrastructure Spending in Tradable and Non-Tradable Growth
- Źródło
- Contemporary Economics, 2019, vol. 13, nr 1, s. 79-98, rys., tab., zał., bibliogr. 92 poz.
- Słowa kluczowe
- Infrastruktura społeczna, Wydatki socjalne
Social infrastructure, Social expenditures - Uwagi
- Klasyfikacja JEL: H5, O1, O2
summ. - Kraj/Region
- Azerbejdżan
Azerbaijan - Abstrakt
- This study investigates the impact of social and physical infrastructure spending on the non-oil tradable and non-tradable sectors while controlling for non-oil capital stock and employment in the Azerbaijani economy for the period 1995-2014. The analysis employs the Engle-Granger and Phillips-Ouliaris cointegration tests using FMOLS estimation results to test for the existence of long-run relationships. The tests results indicate the existence of long-run relationships among the variables. The estimation results reveal positive impacts of both social and physical infrastructure spending on non-oil tradable and non-tradable outputs. However, the impacts on the non-tradable sector are considerably larger than those on the non-oil tradable sector. Developing the non-resource tradable sector, and thereby reducing possibility of the "Resource Curse" and especially the Dutch Disease, is one of the strategic aims of natural resource-rich countries. In this regard, the findings of this research may be useful for Azerbaijani policymakers in taking measures that aim at fostering the development of the non-oil tradable sector, thereby avoiding possible negative outcomes of resource dependency such as the Dutch Disease. (original abstract)
- Pełny tekst
- Pokaż
- Bibliografia
- ADB. (2007). Asian Development Outlook 2007: Growth amid Change. Manila, Philippines. Retrieved from https://www.adb.org/sites/default/files/publication/27709/ado2007.pdf
- Alexiou, C. (2009). Government spending and economic growth: Econometric evidence from the South Eastern Europe (SEE). Journal of Economic and Social Research, 11(1), 1-16.
- Aliyev, K. (2014). WTO Membership and South Caucasus Economies. Saarbrucken: LAP Lambert Academic Publishing.
- Aliyev, K., Dehning, B., & Nadirov, O. (2016). Modelling fiscal policy impact over non-oil GDP in a resource rich country: Evidence from Azerbaijan. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 64(6), 1869-1878.
- Aliyev, K., & Gasimov, I. (2017). Fiscal policy implementation in Azerbaijan before-within-and-after the oil boom. Contemporary Economics, 12(1), 81-93.
- Aliyev, K., & Nadirov, O. (2016). How fiscal policy affects non-oil economic performance in Azerbaijan?. Academic Journal of Economic Studies, 2(3), 11-29.
- Aliyev, K., & Mikayilov, C. (2016). Does the budget expenditure composition matter for long-run economic growth in a resource rich country? Evidence from Azerbaijan. Academic Journal of Economic Studies, 2(2), 147-168.
- Aliyev, K., & Suleymanov, E. (2015). Macroeconomic Analysis and Graphical Interpretation of Azerbaijan Economy in 1991-2012. Expert Journal of Economics, 3(1), 40-49.
- Alshahrani, M. S. A., & Alsadiq, M. A. J. (2014). Economic growth and government spending in Saudi Arabia: An empirical investigation. International Monetary Fund. Retrieved from https://www.imf.org/external/pubs/ft/wp/2014/wp1403.pdf
- Aschauer, D. A. (1989a). Is government spending productive? Journal of Monetary Economics, 23(2), 177-200.
- Aschauer, D. A. (1989b). Does public capital crowd out private capital? Journal of Monetary Economics, 24(2), 171-188.
- Aschauer, D. A. (1989c). Public investment and productivity growth in the Group of Seven. Economic Perspectives, 13(5), 17-25.
- Auty, R. M. (1997). Natural resource endowment, the state and development strategy. Journal of International Development, 9(4), 651-663.
- Auty, R. M. (Ed.). (2001). Resource abundance and economic development. New York, NY: Oxford University Press.
- Barro, R. (1990). Government Spending in a Simple Model of Endogenous Growth. Journal of Political Economy, 98, 103-125.
- Barro, R. (1991). Economic growth in a cross section of countries. Quarterly Journal of Economics, 106(2), 407-443.
- Belgrave, A., & Craigwell, R. (1995). The Impact of government expenditure on economic growth in a small Caribbean Economy: A disaggregated approach. The Central Bank. Retrieved from http://www.centralbank.org.bb/Portals/0/Files/WP1995-20.PDF
- Bose, N., Haque, M. E., & Osborn, D. R. (2007). Public expenditure and economic growth: a disaggregated analysis for developing countries. The Manchester School, 75(5), 533-556.
- Bosworth, B., & Maertens, A. (2010). Economic growth and employment generation: The role of the service sector In: E. Ghani (Ed.), The Service Revolution in South Asia (pp. 103-146). New Delhi: Oxford University Press.
- Brouwer, G. D., & Ericsson, N. R. (1998). Modeling inflation in Australia. Journal of Business & Economic Statistics, 16(4), 433-449.
- Budina, N., Pang, G., & Van Wijnbergen, S. (2007). Nigeria's Growth Record: Dutch Disease or Debt Overhang? (Working Paper No. 4256). The World Bank.
- Bulte, E. H., Damania, R., & Deacon, R. (2003). Resource abundance, poverty and development. Santa Barbara, CA: University of California. Retrieved from https://escholarship.org/uc/item/66z854gv
- Campbell, J. Y., & Perron, P. (1991). Pitfalls and opportunities: What macroeconomists should know about unit roots. In: O. J. Blanchard & S. Fischer (Eds.), NBER macroeconomics annual (Vol. 6, pp. 141-201). Cambridge, MA: The MIT Press.
- Chan, S. G., Ramly, Z., & Karim, M. Z. A. (2017). Government Spending Efficiency on Economic Growth: Roles of Value-added Tax. Global Economic Review, 46(2), 162-188.
- Clemens, M. (2007). Azerbaijan between resource curse and foreign direct investments. Postdam: University of Postdam. Department of Economics.
- Cobb, C. W., & Douglas, P. H. (1928). A theory of production. The American Economic Review, 18(1), 139-165.
- Collins, S. M., Bosworth, B. P., & Rodrik, D. (1996). Economic growth in East Asia: Accumulation versus assimilation. Brookings papers on economic activity, 27(2), 135-203.
- Cooray, A. (2009). Government expenditure, governance and economic growth. Comparative Economic Studies, 51(3), 401-418.
- Corden, W. M., & Neary, J. P. (1982). Booming sector and de-industrialisation in a small open economy. The economic journal, 92(368), 825-848.
- Corden, W. M. (1984). Booming sector and Dutch disease economics: survey and consolidation. Oxford economic Papers, 36(3), 359-380.
- Dehning, B., Aliyev, K., & Nadirov, O. (2016). Modelling 'productivity' of budget expenditure items before-and-after the oil boom in a resource rich country: Evidence from Azerbaijan. International Journal of Economic Research, 13(4), 1793-1806.
- Dickey, D. A., & Fuller, W. A. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49(4), 1057-1072.
- Enders, W. (2010), Applied Econometrics Time Series (4th ed.). Hoboken, NJ: John Wiley & Sons, Inc.
- Dolado, J. J., Jenkinson, T., & Sosvilla-Rivero, S. (1990). Cointegration and unit roots. Journal of Economic Surveys, 4(3), 249-273.
- Douglas, P.H. (1976). The Cobb-Douglas Production Function Once Again: Its History, Its Testing, and Some New Empirical Values. Journal of Political Economy 84, 903-16.
- Fan, S., & Rao, N. (2003). Public spending in developing countries: trends, determination and impact (Discussion paper No. 99). Environment and Production Technology Division. International Food Policy Research Institute. Retrieved from https://ageconsearch.umn.edu/bitstream/16080/1/ep030099.pdf
- Folster, S., & Henrekson, M. (2001). Growth effects of government expenditure and taxation in rich countries. European Economic Review, 45(8), 1501-1520.
- Francois, J., & Hoekman, B. (2010). Services trade and policy. Journal of economic literature, 48(3), 642-692.
- Gemmell, N., Kneller, R., & Sanz, I. (2016). Does the Composition of Government Expenditure Matter for Long-Run GDP Levels? Oxford Bulletin of Economics and Statistics, 78(4), 522-547.
- Ghani, E. (2010). Is service-led growth a miracle for South Asia. In E. Ghani (Ed.), The Service Revolution in South Asia (pp. 35-102). New Delhi: Oxford University Press.
- Grossman, P. (1988). Growth in Government and Economic Growth: the Australian Experience. Australian Economics Papers, 27, 33-45.
- Gylfason, T. (2004). Natural resources and economic growth: from dependence to diversification (Discussion Paper No. 4804). Centre for Economic Policy Research.
- Hamilton, J. D. (1994). Time series analysis (Vol. 2). Princeton, NJ: Princeton University Press.
- Hasanov, F., & Alirzayev, E. (2016). Is Fiscal Policy Supportive for Non-oil Sector Development: The Case of Azerbaijan. Society of Policy Modeling. Available at http://www.econmodels.com/public/dbArticles.php
- Hasanov, F. J., Bulut, C., & Suleymanov, E. (2016). Do population age groups matter in the energy use of the oil-exporting countries? Economic Modelling, 54, 82-99.
- Hasanov, F. (2013a). The role of the fiscal policy in the development of the non-oil sector in Azerbaijan. Hazar Raporu, 4, 162-173.
- Hasanov, F. (2013b). Dutch disease and the Azerbaijan economy. Communist and Post-Communist Studies, 46(4), 463-480.
- Hasanov, F., Mammadov, F. and Al-Musehel, N. (2018). The Effects of Fiscal Policy on Non-Oil Economic Growth. Economies, 6(2), 27, 1-21.
- Ighodaro, C. A., & Oriakhi, D. E. (2010). Does the relationship between government expenditure and economic growth follow Wagner‟ s law in Nigeria? Annals of University of Petrosani Economics, 10(2), 185-198.
- IMF. (2007). The role of fiscal institutions in managing the oil revenue boom. International Monetary Fund, Washington DC.
- Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of economic dynamics and control, 12(2-3), 231-254.
- Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration with applications to the demand for money. Oxford Bulletin of Economics and statistics, 52(2), 169-210.
- Josaphat, P. K., & Morrissey, O. (2000). Government Spending and Economic Growth in Tanzania, 1965-1996 (Research Paper No. 00-6). Centre for Research in Economic Development and International Trade. University of Nottingham. Retrieved from https://www.nottingham.ac.uk/credit/documents/papers/00-06.pdf
- Kalyuzhnova, Y., & Kaser, M. (2006). Prudential management of hydrocarbon revenues in resource rich transition economies. Post-Communist Economies, 18(2), 167-187.
- Kim, D., & Perron, P. (2009). Unit root tests allowing for a break in the trend function at an unknown time under both the null and alternative hypotheses. Journal of Econometrics, 148(1), 1-13.
- Koeda, J., & Kramarenko, V. (2008). Impact of government expenditure on growth: The case of Azerbaijan (Working Papers No. 08/115). International Monetary Fund. Retrieved from https://www.imf.org/~/media/external/pubs/ft/wp/2008/wp08115.ashx
- Krause, J., & Lücke, M. (2005). Political and economic challenges of resource-based development in Kazakhstan and Azerbaijan. Kiel: Institute of Political Science, Kiel University.
- Krugman, P. (1987). The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher: Notes on trade in the presence of dynamic scale economies. Journal of Development Economics, 27(1-2), 41-55.
- Landau, D. (1986). Government and economic growth in the less developed countries: an empirical study for 1960-1980. Economic Development and Cultural Change, 35(1), 35-75.
- Leamer, E. E., Maul, H., Rodriguez, S., & Schott, P. K. (1999). Does natural resource abundance increase Latin American income inequality? Journal of Development Economics, 59(1), 3-42.
- Lucas, R. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics 22, 3-42.
- Lupu, D., & Asandului, M. (2017). The Nexus between Economic Growth and Public Spending in Eastern European Countries. Engineering Economics, 28(2), 155-161.
- MacKinnon, J. G. (1996). Numerical distribution functions for unit root and cointegration tests. Journal of Applied Econometrics, 11(6), 601-618.
- Matsuyama, K. (1992). Agricultural productivity, comparative advantage, and economic growth. Journal of Economic Theory, 58(2), 317-334.
- Michael, B., & Jan-Erik, W. (2014). Estimating aggregate capital stocks using the perpetual inventory method: A survey of previous implementations and new empirical evidence for 103 countries. Review of Economics, 65(1), 1-34.
- Narayan, S., & Narayan, P. K. (2004). Determinants of demand for Fiji's exports: an empirical investigation. The Developing Economies, 42(1), 95-112.
- Nehru, V., & Dhareshwar, A. (1993). A new database on physical capital stock: sources, methodology and results. Revista de análisis económico, 8(1), 37-59.
- Oomes, N., & Kalcheva, K. (2007). Diagnosing Dutch disease: does Russia have the symptoms. (Discussion Paper No. 6). Bank of Finland. Retrieved from http://www.suomenpankki.fi/bofit_en/tutkimus/tutkimusjulkaisut/dp/Documents/dp0707.pdf
- Olukayode, M. E. (2009). Does government spending spur economic growth in Nigeria? (Working Paper No. 17941). University Library of Munich, Germany. Retrieved from https://mpra.ub.unimuenchen.de/17941/1/MPRA_paper_17941.pdf
- Paczynski, W., & Tochitskaya, I. (2008). The Economic Aspects of the Energy Sector in CIS Countries. Warsaw: Center for Social and Economics Research.
- Perron, P. (2006). Dealing with structural breaks. Palgrave handbook of econometrics, 1(2), 278-352.
- Perron, P. (1989). The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis. Econometrica, 57, 1361-1401
- Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326.
- Phillips, P. C., & Hansen, B. E. (1990). Statistical inference in instrumental variables regression with I (1) processes. The Review of Economic Studies, 57(1), 99-125.
- Quy, N. H. (2017). The Role of Public Expenditures in Economic Growth at Provincial Level: Empirical Study in Vietnam. Journal of Politics and Law, 10(2), 88-96.
- Ram, R. (1986). Government Size and Economic Growth: A New Framework and Some Evidence from Cross-Section and Time Series Data. The American Economic Review 76(1), 191-203.
- Romer, P. (1990). Endogenous technological change. Journal of Political Economy, 98(5), 71-102.
- Saad, W., & Kalakech, K. (2009). The nature of government expenditure and its impact on sustainable economic growth. Middle Eastern Finance and Economics, 1(4), 39-47.
- Sachs, J. D., & Warner, A. M. (1999). The big push, natural resource booms and growth. Journal of Development Economics, 59(1), 43-76.
- Sahin, O., Can, N., & Demirbas, E. (2014). The effects of infrastructure determinants on economic growth: European Union sample. Eurasian Journal of Business and Economics, 7(13), 11-27.
- Sahoo, P., Dash, R. K., & Nataraj, G. (2010). Infrastructure development and economic growth in China (Discussion Paper No. 261). Institute of Developing Economies. Japan External Trade Organization. Retrieved from http://www.ide.go.jp/English/Publish/Download/Dp/pdf/261.pdf
- Sala-i-Martin, X., & Subramanian, A. (2003). Addressing the natural resource curse: an illustration from Nigeria (Working Paper No. 9804). The National Bureau of Economic Research. Retrieved from https://www.nber.org/papers/w9804.pdf
- Sojoodi, S., Mohseni Zonuzi, F., & Mehin Aslani Nia, N. (2012). The Role of Infrastructure in Promoting Economic Growth in Iran. Iranian Economic Review, 16(32), 111-132.
- SSCA. (2016). State budget. Expenditure-total (million manat). Available at http://www.azstat.org/MESearch/search?departament=10&lang=en
- Stijns, J. P. C. (2005). Natural resource abundance and economic growth revisited. Resources Policy, 30(2), 107-130.
- Sturm, M., Gurtner, F. J., & Gonzalez, J. (2009, June). Fiscal policy challenges in oil-exporting countries-a review of key issues (Occasional Paper No. 104). European Central Bank. Retrieved from http://www.arabdevelopmentportal.com/sites/default/files/publication/250.fiscal_policy_challenges_in_oilexporting_countries_a_review_of_key_issues.pdf
- Stock, J. H., & Watson, M. W. (1993). A simple estimator of cointegrating vectors in higher order integrated systems. Econometrica, 61(4), 783-820.
- Taban, S. (2010). An examination of the government spending and economic growth nexus for Turkey using the bound test approach. International Research Journal of Finance and Economics, 48, 184-193.
- The World Bank. (1994). World Development Report 1994: Infrastructure for development, New York, NY: Oxford University Press.
- Wakeman-Linn, J., Mathieu, P., & Van Selm, B. (2003). Oil funds in transition economies: Azerbaijan and Kazakhstan. In: J. M. Davis, R. Ossowski, & A. Fedelino (Eds.), Oil Producing Countries (pp. 339-358). Washington, DC: International Monetary Fund.
- Vogelsang, T. J., & Perron, P. (1998). Additional tests for a unit root allowing for a break in the trend function at an unknown time. International Economic Review, 39(4), 1073-1100.
- Zivot, E., & Andrews, D. W. K. (1992). Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis. Journal of Business & Economic Statistics, 10, 251-270.
- Cytowane przez
- ISSN
- 2084-0845
- Język
- eng
- URI / DOI
- http://dx.doi.org/10.5709/ce.1897-9254.300