The Causal Relationship between Government Revenue and Expenditure in Jordan

Hussein Ali Al-Zeaud
Hussein Ali Al-Zeaud * §
Contact
§ Al al-Bayt university Mafraq-Jordan

Send Message

To: Author

The Causal Relationship between Government Revenue and Expenditure in Jordan

Article Fingerprint

ReserarchID

MBR7H9AE

The Causal Relationship between Government Revenue and Expenditure in Jordan Banner

AI TAKEAWAY

Connecting with the Eternal Ground
Access Review Comments
  • English
  • Afrikaans
  • Albanian
  • Amharic
  • Arabic
  • Armenian
  • Azerbaijani
  • Basque
  • Belarusian
  • Bengali
  • Bosnian
  • Bulgarian
  • Catalan
  • Cebuano
  • Chichewa
  • Chinese (Simplified)
  • Chinese (Traditional)
  • Corsican
  • Croatian
  • Czech
  • Danish
  • Dutch
  • Esperanto
  • Estonian
  • Filipino
  • Finnish
  • French
  • Frisian
  • Galician
  • Georgian
  • German
  • Greek
  • Gujarati
  • Haitian Creole
  • Hausa
  • Hawaiian
  • Hebrew
  • Hindi
  • Hmong
  • Hungarian
  • Icelandic
  • Igbo
  • Indonesian
  • Irish
  • Italian
  • Japanese
  • Javanese
  • Kannada
  • Kazakh
  • Khmer
  • Korean
  • Kurdish (Kurmanji)
  • Kyrgyz
  • Lao
  • Latin
  • Latvian
  • Lithuanian
  • Luxembourgish
  • Macedonian
  • Malagasy
  • Malay
  • Malayalam
  • Maltese
  • Maori
  • Marathi
  • Mongolian
  • Myanmar (Burmese)
  • Nepali
  • Norwegian
  • Pashto
  • Persian
  • Polish
  • Portuguese
  • Punjabi
  • Romanian
  • Russian
  • Samoan
  • Scots Gaelic
  • Serbian
  • Sesotho
  • Shona
  • Sindhi
  • Sinhala
  • Slovak
  • Slovenian
  • Somali
  • Spanish
  • Sundanese
  • Swahili
  • Swedish
  • Tajik
  • Tamil
  • Telugu
  • Thai
  • Turkish
  • Ukrainian
  • Urdu
  • Uzbek
  • Vietnamese
  • Welsh
  • Xhosa
  • Yiddish
  • Yoruba
  • Zulu
Font Type
Font Size
Font Size
Bedground

Abstract

The main purpose of the study is to examine the causal relationship between government revenues and expenditures of the Jordan government over the period from 1990 to 2011 using Granger causality and VECM tests methodology. Which provides channels of causation between government revenues (GR) and government expenditures (GE).The empirical results show that bidirectional causality running between revenues and expenditure. This result supports lend support to the fiscal synchronization hypothesis, implying that government of Jordan makes its revenues and expenditures decisions simultaneously. On other hand, it shows that allocated expenditures decide the amount of revenues which in turn affects the size of expenditures for the present and the next fiscal year(s).Thus the policy maker should pay attention to the bidirectional causality between government expenditures and revenues which might complicate the government’s efforts to control the budget deficit and may contribute in explaining the high national debt figure.

References

44 Cites in Article
  1. A Afonso,C Rault (2009). Bootstrap Panel Granger-Causality between Government Spending.
  2. M Aslan,M Taşdemir (2009). Is Fiscal Synchronization Hypothesis Relevant for Turkey? with Endogenous Structural Breaks.
  3. B Aboal-Foul,H Baghesani (2004). The Causal Relation between Government Revenue and Jordan.
  4. Hirotugu Akike (1969). Fitting Autoregressive Models of Prediction.
  5. William Anderson,Myles Wallace,John Warner (1986). Government Spending and Taxation: What Causes What?.
  6. H Baghestani,R Mcnown (1994). Do Revenue or Expenditures Respond to Budgetary Disequilibria?.
  7. Robert Barro (1974). Are Government Bonds Not Wealth?.
  8. John Baffes,Anwar Shah (1994). Causality and Comovement between Taxes and Expenditures: Historical Evidence from Argentina, Brazil and Mexico.
  9. R Blackley,Paul (1986). Causality Between Revenues and Expenditures and the Size of the Federal Budget.
  10. Henning Bohn (1991). Budget balance through revenue or spending adjustments?.
  11. James Buchanan,Richard Wagner (1978). Dialogues concerning fiscal religion.
  12. T Chang (1999). Revisiting the Government Revenue-Expenditure Nexus: Evidence from 15 OECD Countries based on the Panel Data Approach.
  13. Tsangyao Chang,Wen Liu,Steven Caudill (2002). Tax-and-spend, spend-and-tax, or fiscal synchronization: new evidence for ten countries.
  14. Ali Darrat (1998). Tax and Spend, or Spend and Tax? An Inquiry into the Turkish Budgetary Process.
  15. Joel Eita,Daisy Mbazima (2008). The causal relationship between government revenue and expenditure in Namibia.
  16. Robert Engle,Clive Granger (1987). Cointegration and Error Correction: Representation, Estimation, and Testing.
  17. M Friedman (1978). The Limitations of Tax Limitation.
  18. C Granger (1969). Investigating Causal Relations by Econometric Models and Cross-spectral Methods.
  19. Neelesh Gounder,Paresh Narayan,Arti Prasad (2007). An empirical investigation of the relationship between government revenue and expenditure.
  20. Craig Hakkio,Mark Rush (1991). Cointegration: How Short Is the Long0Run?.
  21. Mohammad Hasan,Ian Lincoln (1997). Tax then spend or spend then tax? Experience in the UK, 1961–93.
  22. Kevin Hoover,Steven Sheffrin (1992). Causation, Spending, and Taxes: Sand in the Sandbox or Tax Collector for the Welfare State?.
  23. Soren Johansen,Katarina Juselius (1992). Testing Structural Hypothesis in Multivariate Cointegration Analysis of PPP and UIP for KH.
  24. Soren Johansen (1991). Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models.
  25. Tsangyao Chang,Gengnan Chiang (2009). Figure 5. Government expenditure and tax revenue in selected OECD countries.
  26. D Joulfaian,R Mookerjee (1991). Dynamics of Government Revenues and Expenditures in Industrial Economies.
  27. Y Keho (2010). Budget Balance through Revenue or Spending Adjustments? An Econometric Analysis of the Ivorian Budgetary Process, 1960-2005.
  28. Stephen Miller,Frank Russek (1990). Co-Integration and Error-Correction Models: The Temporal Causality between Government Taxes and Spending.
  29. Allan Meltzer,Scott Richard (1981). A Rational Theory of the Size of Government.
  30. Maysam Mohsen,Abbas Rezazadeh (2012). between Revenue and Expenditure in Oil Exporting Countries.
  31. Syed Muhammad,Amber Tanzeel (2012). An Investigation of Granger Causality between Tax Revenues and Government Expenditures.
  32. R Musgrave (1966). Principles of Budget Determination.
  33. L Nanthakumar,R Taha (2007). Have Taxes Led Government Expenditure in Malaysia.
  34. Narayan Narayan (2006). Government Revenue and Government Expenditure Nexus: Evidence from Developing Countries.
  35. O Owoye (1995). The Causal Relationship Between Taxes and Expenditures in theG7Countries: Cointegration and Error-Correction Models.
  36. Omo Aregbeyen,Taofik Mohammed (2012). Testing the Revenue and Expenditure Nexus in Nigeria: An Application of the Bound Test Approach.
  37. Onafowora Owoye (2011). The Relationship between Tax Revenues and Government Expenditures in European Union and Non-Union OECD Countries.
  38. Peter Phillips,Pierre Perron (1988). Testing for a unit root in time series regression.
  39. Kevin Ross,James Payne (1998). A Reexamination of Budgetary Disequilibria.
  40. Mahmood Rafaqet (2012). The Causal Relationship between Government Expenditure and Revenue in Pakistan.
  41. (2012). Oil Exporting Countries.
  42. L Xiaoming (2001). Government Revenue, Government Expenditure, and Temporal Causality: Evidence from China.
  43. Mohammad Yousef (2012). The Causality between Government Revenue and Government Expenditure in Iran.
  44. Somaye Saeed (2012). Relationship between Government Spending and Revenue: Evidence from.
Show All References
Download References

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Hussein Al-Zeaud. 2014. "The Causal Relationship between Government Revenue and Expenditure in Jordan". Global Journal of Management and Business Research, Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 14 (GJMBR Volume 14 Issue B6).

More Citation Formats

Download Citation

  • Open Access
  • CC-BY-ND-NC 4.0
Download Article
Access OJS
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
government expendituresgranger causalityrevenuesVECM
Classification
GJMBR-B Classification JEL Code: O10
  • Submission ReceivedDecember 8, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 2, 2014
  • Published January 15, 2014
Version of record

v1.2

Issue date
October 6, 2014

Language
English
Order Article Reprint
Experiance in AR

Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.

View in VR
Read in 3D

Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.

View in 3D
Article Matrices
Total Views: 1.9K
Total Downloads: 102
All Trends

Request Access

Please fill out the form below to request access to this research paper. Your request will be reviewed by the editorial or author team.
X

This is the heading

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

High-quality academic research articles on global topics and journals.

The Causal Relationship between Government Revenue and Expenditure in Jordan

Hussein Al-Zeaud
Hussein Al-Zeaud Al al-Bayt university Mafraq-Jordan
  • Submission ReceivedDecember 8, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 2, 2014
  • Published January 15, 2014