The Relationship between Government Expenditures and Economic Growth in Thailand

The notion that more government expenditures can stimulate growth is controversial. The causation between government expenditures and economic growth in Thailand was examined using the Granger causality test. There was no cointegration between government expenditures and economic growth. A unidirectional causality from government expenditures to economic growth existed. However, the causality from economic growth to government expenditures was not observed. Further more, estimation results from the ordinary least square confirmed the strong positive impact of government spending on economic growth during the period of investigation