An Economic Analysis of Government Financing for Development in Malaysia
This study examines the ways and means of government spending and the consequent impacts on the economy . The scope for enhancing the efficiency of government spending and the utilisation of the various sources of revenue are identified so as to maximise the net benefit of government involvemen...
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| Format: | Thesis |
| Language: | English English |
| Published: |
1993
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8235/1/FEP_1993_4_A.pdf |
| Summary: | This study examines the ways and means of government
spending and the consequent impacts on the economy .
The scope for enhancing the efficiency of government
spending and the utilisation of the various sources
of revenue are identified so as to maximise the net
benefit of government involvement in the economy. The main
sources of financing government expenditure include taxes,
domestic and foreign borrowing and credit creation. Trends of
both the spending and financing aspects of the government budget are also discussed within the context of several related
theoretical and empirical debates. Initially, the level of
analysis is partial in nature, using single equation estimates,
although cross references are made to link the various sources
of government financing and spending. A simple macroeconomic
model within the context of a simultaneous equation system
is later developed to identify the impact of changes
in several sources of government finance on main
macro variables such as GNP, employment, prices, wages and
private investment. This is done through several simulation
exercises involving changes in policy variables such as taxes,
the supply of money and public borrowing. |
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