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Awuh (2018) examined how public expenditure affects economic growth in a sample set of developing

and advanced countries from 1995 to 2015 period. Some expenses that may be considered productive in
the developing countries may be unproductive in the developed countries and vice versa. Also, some
spending that is deemed to be productive can become unproductive when it is in an excess amount. The
data analysis shows that a relationship exists between government expenditure and economic growth.
While some component shows some surprising negative results between public expenditure and
economic growth others exerted positive effect. In the developing countries, government expenditure
on health and defense appear to be cynical and statistically significant, however, this is expected
especially for defense expenditure since they are public consumption expenditure on health it can be
argued that most developing countries are characterized by disease outbreak such as malaria, ebola
virus, etc. which has an adverse effect on human capital and economic growth. As expected, public
expenditure on education, transport, and communication, agriculture, capital expenditure seem to be
confident and significant. Surprisingly, in advanced countries expenditure on health, total expenditure
and current expenditure are negative and significant, but health is not significant. This is more surprising
for integral expenditure component; this might be the case that there have been an excess of current
expenditure in total expenditure. on the other hand, spending on agriculture, capital expenditure
transport and communication appear to be positively related to economic growth.

Maingi (2017) concludes that the composition of government expenditure matters for economic growth.
in the long-run, expenditure on economic affairs, defense, education, government investment, general
administration and services and physical infrastructure have positive impacts on economic growth. in
the short-run health care, public order and national security have positive impact on economic growth,
whereas, public debt servicing has negative impact on economic growth.

Prasetyo and Zuhdi (2013) compared the government expenditure efficiency in 81 countries during
2006-2010 by using the DEA method. they used government expenditures per capita on education and
health sectors and also on subsidies and other transfers as the inputs and Human Development Index as
the output. they found that there are countries that always be positioned in the efficient frontier during
the sample period, namely: Armenia, Australia, Bangladesh, Chile, Georgia, Japan, Korea Republic, Lao
PDR, Madagascar, Niger, Norway, Philippines, Sierra Leone, Singapore, US and Zambia. Nevertheless,
only Singapore and Zambia succeed to maintain positive improvements among countries that are listed
in the efficient frontiers.

Aydin et. al (2016) examined the relationship between quarterly growth rates of GDP and three different
government expenditure types: final government consumption expenditure, government investment
expenditure and total government expenditure. the results of the testing based on the approach
showed that there exists only one threshold values for final government consumption expenditure,
government investment expenditure and total government expenditure were found to be 13.22%,
4.69% and 16.30% respectively. the findings also showed that the relationship between government
spending and economic growth may differ above and below the threshold value: the effect of
government spending on economic growth is statistically significant and negative when the spending is
below the threshold, and is statistically significant and positive when the spending is above the
threshold. they concluded that government spending below the threshold has a significant and negative
effect on economic growth, while spending above the threshold has a significant and positive effect on
growth reveals that the level of government spending is important for economic growth in Turkey and
the government must keep the spending above the threshold level to achieve a steady and sufficient
growth

Suanin (2015) said that the finding indicates that while budgetary expenditure has the potential to
promote economic growth in the long-run, extra-budgetary expenditure as well as quasi-fiscal spending
can also stimulate short-run economic growth

Magazzino (2014) used several panel econometric techniques in order to explore the relationship
between government revenue and expenditure in the ASEAN countries for the years 1980-2012. panel
cointegration analyses revealed an empirical support to long-run relationship between government
expenditure and revenue, both in former ASEAN-6 member states and in ASEAN-10 countries. granger
causality analyses showed mixed results, although five out of ten ASEAN countries (Indonesia, Laos,
Malaysia, Philippines and Singapore), the "tax-and-spend" hypothesis holds, so that changes in
government revenues (taxes) lead to changes in government ex penditure

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