Research
Introduction
In this research, we will use Malaysia as our focus country to determine the factors that will affect the growth in government expenditure. There will be four variables, which included one dependent variable that is government expenditure (G) and three independent variables – inflation rate (%), population growth rate (%) and public debts growth rate (%). Our research is to study the relationship between inflation rate, population growth rate and public debts growth rate with government expenditure rate. When there are changes in inflation rate, population growth rate and public debts growth rate, how it would affect the government expenditure (G) to grow or to decline.
There are many researches about this topic has been discussed before this. According to a C.Okafor and O.Eiya (2011), they looked at empirical data in Nigeria from year 1999 to 2008 and found that inflation rate has a negative relationship with government expenditure, while population growth rate and public debts growth rate has a significant positive relationship with government expenditure.
Therefore,we will review some key studies on the relationship between inflation rate, population growth rate and public debts growth rate with government expenditure by providing logical explanation on the direction of the relationship between those dependent and independent variables. Thus, we will conduct an empirical study by using twenty years of annually data.
Research Problem
Government Spending in Malaysia increased to 33,624 MYR Million in the fourth quarter of 2012 from 22,706 MYR Million in the third quarter of 2012. Historically, from 2005 until 2012, Malaysia Government Spending averaged 19,644.82 MYR Million reaching an all-time high of 33,624 MYR Million in November of 2012 and a record low of 12,420 MYR Million in February of 2005. The government expenditure in Malaysia is reported by the Department of Statistics, Malaysia. It shows the increments of the government expenditure
In this research, we will use Malaysia as our focus country to determine the factors that will affect the growth in government expenditure. There will be four variables, which included one dependent variable that is government expenditure (G) and three independent variables – inflation rate (%), population growth rate (%) and public debts growth rate (%). Our research is to study the relationship between inflation rate, population growth rate and public debts growth rate with government expenditure rate. When there are changes in inflation rate, population growth rate and public debts growth rate, how it would affect the government expenditure (G) to grow or to decline.
There are many researches about this topic has been discussed before this. According to a C.Okafor and O.Eiya (2011), they looked at empirical data in Nigeria from year 1999 to 2008 and found that inflation rate has a negative relationship with government expenditure, while population growth rate and public debts growth rate has a significant positive relationship with government expenditure.
Therefore,we will review some key studies on the relationship between inflation rate, population growth rate and public debts growth rate with government expenditure by providing logical explanation on the direction of the relationship between those dependent and independent variables. Thus, we will conduct an empirical study by using twenty years of annually data.
Research Problem
Government Spending in Malaysia increased to 33,624 MYR Million in the fourth quarter of 2012 from 22,706 MYR Million in the third quarter of 2012. Historically, from 2005 until 2012, Malaysia Government Spending averaged 19,644.82 MYR Million reaching an all-time high of 33,624 MYR Million in November of 2012 and a record low of 12,420 MYR Million in February of 2005. The government expenditure in Malaysia is reported by the Department of Statistics, Malaysia. It shows the increments of the government expenditure
References: C. Okafor and O. Eiya, Determinants of Growth in Government Expenditure: An Empirical Analysis of Nigeria, Research Journal of Business Management, Vol. 5, No. 1, 2011, p. 44 – 50. Peacock, A. T. And Wiseman, J. (1961). The Growth of Public Expenditure in the United Kingdom, Princeton University Press, Princeton N.J. Ghartey, E. E. (2006). Economic Growth, Expanding Role of Government, and Fiscal Policy in Ghana, IEA Ghana. [ 4 ]. S. F. Iwejingi, Population Growth, Environmental Degradation and Human Health in Nigeria, Research on Humanities and Social Sceience, Vol. 2, No. 10, 2012.