International Conference on Eurasian Economies
29-31 August 2016 – Kaposvár, HUNGARY
Paper detail
Paper ID : 1473
Status : Paper published
Language : Turkish
Topic : Regional Economics
Presenter: Prof. Dr. Hakan Çetintaş
Session : 1E Büyüme I
Testing the Relationship Between Government Spending and Revenue: Case of Kyrgyzstan
Devlet Harcamaları ve Gelirleri Arasındaki İlişkinin Test Edilmesi: Kırgızistan Örneği
- Prof. Dr. Hakan Çetintaş (Balıkesir Univesity, Türkiye)
- Asst. Prof. Dr. Damira Baigonushova (Kyrgyz-Turkish Manas University, Kyrgyzstan)
Abstract
Sound fiscal policy is very important to promote price stability and sustainable growth in real economy. Thus, understanding the relationship between government spending and revenue is also essential to evaluate how to address fiscal imbalances. So, the focus of this research is to investigate the relationship between government revenue and spending in Kyrgyzstan. For this purpose, we have used an Autoregressive Distributed Lag (ARDL), also Variance Decomposition approach and found that these two data are cointegrated. Findings support “the tax- spend hypothesis” for fiscal discipline in Kyrgyzstan over the period of 1995-2014. In other words, according to the results, increase in real government revenue results in even higher public expenditure.
JEL codes: E62, H59, H20
Çetintaş, Hakan, Baigonushova, Damira (2016). "Testing the Relationship Between Government Spending and Revenue: Case of Kyrgyzstan" in Proceedings of International Conference of Eurasian Economies 2016, pp.773-785, Kaposvár, HUNGARY.
DOI: https://doi.org/10.36880/C07.01473