Sustainability - 2023 : Does the Effectiveness of Budget Deficit Vary between Welfare and Non-Welfare Countries?

Prof. Madya Dr. Farha, Abdol Ghapar and Prof. Madya Dr. Hirnissa, Mohd Tahir (2023) Sustainability - 2023 : Does the Effectiveness of Budget Deficit Vary between Welfare and Non-Welfare Countries? Sustainability, 15 (3901). pp. 1-22. ISSN 2071-1050

Text 6. Does the Effectiveness of Budget Deficit Vary between Welfare and Non-Welfare Countries_.pdf Download (3MB)

Abstract

Government interventionisimperativeinthemixedeconomicsystemduetomarket failures,imperfection,purepublicgoods,andeconomicexternalities.Tothisend,wemeasurethe comparative impactofbudgetdeficitsoneconomicgrowth,incorporatingthemoderatingroleof quality ofgovernance(QOG)forwelfareandnon-welfarecountries.Weapplyanewlydeveloped econometric model,namelyPanelQuantileRegressionviaMomentConditions,consideringthe scale andlocationeffectduetohighheterogeneityinourpaneltimeseriesdataover1990–2020. Our empiricalinvestigationshowsthatthebudgetdeficitpromoteseconomicgrowthsustainability in theoverallsamplecountries.Thecomparativeanalysisconfirmsthatbudgetdeficitpromotes economic growthforwelfarecountrieswhileitimpendsfornon-welfarecountries.Furthermore, QOG augmentssustainableeconomicgrowthindifferenteconomiccircumstancesinwelfarecountries and non-welfarecountries.Finally,theresultsalsodemonstratethattheQOGplaysasupportiverole in thenexusbetweenbudgetdeficitandeconomicgrowthinthefullsamplecountries.Thefindings indicate thattheeffectivenessofthebudgetdeficitvariesacrosswelfareandnon-welfarecountries. In general,QOGpromoteseconomicgrowth,butitsstringentrulesandrestrictionssomewhatslow down thewheelofthegrowthprocess.Weprovideseveralpolicyimplications

Item Type:	Article
Uncontrolled Keywords:	economic growth; budget deficit; governance; quantile via moment; welfare country
Divisions:	Institute of Graduate Studies (IGS)
Depositing User:	LIBRARY2 UPTM
Date Deposited:	18 Jun 2025 01:42
Last Modified:	18 Jun 2025 01:42
URI:	http://eprints.kuptm.edu.my/id/eprint/4395

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