Authors : Haidar A.H. Al-Jubouri and Hayder H. Tuama
Abstract: The relationship between trends in public spending and economic performance remains controversial and controversial at the level of economic theory and empirical studies in both developing and developed countries. In the oil countries, public spending plays multiple roles in economic activity, the most important being the engine of economic growth and stability and a tool to distribute the revenues of the oil supplier to various segments of society as well as being the channel between the fluctuations of oil prices and the direction of the economic cycle in these countries. This study attempts to reveal the dynamic relationship between government expenditure and economic growth, expressed in GDP at constant prices in the Iraqi economy during the period 1990-2015 using the model of joint integration and the rationale of the granger using annual and quarterly data. The results revealed a long-term equilibrium relationship between the above variables. Government spending has an influential role in economic growth in the short and long term. Finally, the Granger test of causality from government spending towards GDP as expected in oil-exporting countries, the oil resource in moving the economy through the channel of government spending both current and investment.
Haidar A.H. Al-Jubouri and Hayder H. Tuama, 2019. Government Spending and Economic Growth in Rental Countries: Dynamics of Conjugation and Correlation. Journal of Engineering and Applied Sciences, 14: 10162-10168.