Does Government Spending in Health, Education, and Military Improve Welfare in Asian Developing Countries?

Authors

  • Wiksadana Wiksadana Department of Economics, Faculty of Economics and Business, Universitas Padjajaran, West Java
  • Estro Dariatno Sihaloho Department of Economics, Faculty of Economics and Business, Universitas Padjajaran, West Java http://orcid.org/0000-0003-3761-0884

DOI:

https://doi.org/10.18196/jesp.v22i1.9337

Keywords:

Government Spending, Welfare, Asian Developing Countries

Abstract

The study of government expenditure is essential for economists and policymakers. This study aims to analyze the impact of various government spending, mainly on education, health, and military, on the effect of welfare on Asian Countries. This study was conducted in 20 Asian countries constructed on panel data from 2013–2017 and is analyzed using the fixed effect general least square (FEGLS) method. The results show that, government spending in health, military, and education had a positive and significant effect on Asian Countries' welfare. This research concludes that, the government health expenditure had the highest impact on welfare, followed by education and military spending.

References

Ahmad, A., & Bano, S. (2015). Working Capital Management Matters Profitability of Textile Sector: With GLS Model. International Journal of Economics and Empirical Research, 3(11), 543–549.

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. Retrieved from https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.452.6517&rep=rep1&type=pdf

Alptekin, A., & Levine, P. (2012). Military expenditure and economic growth: A meta-analysis. European Journal of Political Economy, 28(4), 636–650. https://doi.org/10.1016/j.ejpoleco.2012.07.002

Appiah, E. N. (2017). The effect of education expenditure on per capita GDP in developing countries. International Journal of Economics and Finance, 9(10), 136. https://doi.org/10.5539/ijef.v9n10p136

Ardiansyah, M. A. (2016). Dampak program PLBK (Penataan Lingkungan Berbasis Komunitas) yang didukung oleh unit pengelola keuangan PNPM Mandiri terhadap perilaku masyarakat dan tingkat kesejahteraannya. Jurnal Ekonomi & Studi Pembangunan, 17(2), 114-126. https://doi.org/10.18196/jesp.17.2.3796

Barro, R., & Grilli, V. (1994). European macroeconomics. Red Globe Press.

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. https://doi.org/10.1111/j.1467-9957.2007.01028.x

Chandra, A., & Islamia, J. M. (2010). Does government expenditure on education promote economic growth? An econometric analysis. Munich Personal RePEc Archive, (25480). Retrieved from https://mpra.ub.uni-muenchen.de/25480/

Gupta, S., Verhoeven, M., & Tiongson, E. R. (2003). Public spending on health care and the poor. Health Economics, 12(8), 685–696. https://doi.org/10.1002/hec.759

Harris, G. (1986). The determinants of defence expenditure in the ASEAN region. Journal of Peace Research, 23(1), 41–49. https://doi.org/10.1177/002234338602300104

Kiran, B. (2013). Testing the impact of educational expenditures on economic growth: new evidence from Latin American countries. Quality & Quantity, 48(3), 1181–1190. https://doi.org/10.1007/s11135-013-9828-2

Kuhl Teles, V., & Andrade, J. (2008). Public investment in basic education and economic growth. Journal of Economic Studies, 35(4), 352–364. https://doi.org/10.1108/01443580810895635

Kweka, J. P., & Morrissey, O. (2000). Government spending and economic growth in Tanzania, 1965-1996. Centre for Research in Economic Development and International Trade, University of Nottingham. CREDIT Research Paper, 00(6), 1-53. Retrieved from https://www.nottingham.ac.uk/credit/documents/papers/00-06.pdf

Landau, D. (1983). Government expenditure and economic growth: A cross-country study. Southern Economic Journal, 49(3), 783-792. https://doi.org/10.2307/1058716

Lin, S. A. Y. (1994). Government spending and economic growth. Applied Economics, 26(1), 83–94. https://doi.org/10.1080/00036849400000064

Lindén, M. (1992). Military expenditure, government size and economic growth in the Middle East in the period 1973-85. Journal of Peace Research, 29(3), 265–270. https://doi.org/10.1177/0022343392029003003

Loizides, J., & Vamvoukas, G. (2005). Government expenditure and economic growth: Evidence from trivariate causality testing. Journal of Applied Economics, 8(1), 125–152. https://doi.org/10.1080/15140326.2005.12040621

Madley-Dowd, P., Hughes, R., Tilling, K., & Heron, J. (2019). The proportion of missing data should not be used to guide decisions on multiple imputation. Journal of Clinical Epidemiology, 110, 63–73. https://doi.org/10.1016/j.jclinepi.2019.02.016

Mercan, M., & Sezer, S. (2014). The effect of education expenditure on economic growth: The case of Turkey. Procedia - Social and Behavioral Sciences, 109, 925–930. https://doi.org/10.1016/j.sbspro.2013.12.565

Michaelowa, K. (2000). Returns to education in low income countries: evidence for Africa. In: Committee on Developing Countries of the German Economic Association. Annual meeting, Berlin, 30 June 2000 - 30 June 2000. Retrieved from http://www.ipz.uzh.ch/institut/mitarbeitende/staff/michaelowa/publikationen/Buechern/32-english.pdf

Piabuo, S. M., & Tieguhong, J. C. (2017). Health expenditure and economic growth - a review of the literature and an analysis between the economic community for Central African States (CEMAC) and selected African countries. Health Economics Review, 7(1), 1-13. https://doi.org/10.1186/s13561-017-0159-1

Razmi, M.J., Abbasian, E., & Mohammadi, S. (2012). Investigating the Effect of Government Health Expenditure on HDI in Iran. Journal of Knowledge Management, Economics and Information Technology, 2(5), 1-8. Retrieved from https://www.scientificpapers.org/economics/investigating-the-effect-of-government-health-expenditure-on-hdi-in-iran/

Riasat, S., Atif, R. M., & Zaman, K. (2011). Measuring the impact of educational expenditures on economic growth: Evidence from Pakistan. Educational Research, 2(13), 1839–1846. Retrieved from http://interesjournal.org/ER/pdf/2011/December%20Special%20Anniversary%20Review/Riasat%20et%20al.pdf

Rothschild, K. W. (1973). Military expenditure, exports and growth. Kyklos, 26(4), 804–814. https://doi.org/10.1111/j.1467-6435.1973.tb02777.x

Sheytanova, T. (2014). The accuracy of the Hausman test in panel data: A Monte Carlo Study. Retrieved from http://oru.diva-portal.org/smash/get/diva2:805823/FULLTEXT01.pdf

Taiwo, M., & Abayomi, T. (2011). Government expenditure and economic development : Empirical evidence from Nigeria. European Journal of Business and Management, 3(9), 18–29. Retrieved from https://core.ac.uk/download/pdf/234624111.pdf

Tongkong, S. (2012). Key factors influencing capital structure decision and its speed of adjustment of Thai listed real estate companies. Procedia - Social and Behavioral Sciences, 40, 716–720. https://doi.org/10.1016/j.sbspro.2012.03.254

World Bank. (1993). World Development Report 1993: Investing in Health. In World Development Report 1993. https://doi.org/10.1596/0-1952-0890-0

Wu, S.-Y., Tang, J.-H., & Lin, E. S. (2010). The impact of government expenditure on economic growth: How sensitive to the level of development? Journal of Policy Modeling, 32(6), 804–817. https://doi.org/10.1016/j.jpolmod.2010.05.011

Yang, S.-R., Koo, W., & Wilson, W. (1992). Heteroskedasticity in Crop Yield Models. Journal of Agricultural and Resource Economics, 17(01), 103–109. Retrieved from https://jareonline.org/articles/heteroskedasticity-in-crop-yield-models/

Yasin, M. (2003). Public spending and economic growth: Empirical investigation of Sub-Saharan Africa. Southwestern Economic Review, 30(1), 59–65. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.531.9796&rep=rep1&type=pdf

Yildirim†, J., Sezgin, S., & Öcal, N. (2005). Military expenditure and economic growth in Middle Eastern countries: A dynamic panel data analysis. Defence and Peace Economics, 16(4), 283–295. https://doi.org/10.1080/10242690500114751

Downloads

Published

2021-04-05

How to Cite

Wiksadana, W., & Sihaloho, E. D. (2021). Does Government Spending in Health, Education, and Military Improve Welfare in Asian Developing Countries?. Jurnal Ekonomi &Amp; Studi Pembangunan, 22(1), 59–74. https://doi.org/10.18196/jesp.v22i1.9337

Issue

Vol. 22 No. 1: April 2021

Section

Articles

License

License

You are free to:

  • Share — copy and redistribute the material in any medium or format
  • Adapt — remix, transform, and build upon the material for any purpose, even commercially.

The licensor cannot revoke these freedoms as long as you follow the license terms.

Under the following terms:

  • Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
  • ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.
  • No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.

Creative Commons License

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.