"Government revenue and government spending causal analysis": multi country evidences

This study investigate the causal relationship between the government revenue and government spending in selected eight Asian countries, namely, India, Malaysia, Pakistan, Philippine, Singapore, South Korea, Sri Langka and Thailand, for the data span from 1960 to 2002. This study can be use to fill up the gap in the literature on causality between the government revenue and government spending in Asian countries. A general form of the government revenue and government spending is use and recent developments in time series econometrics, including unit root and error correction model were used. The empirical results indicated that Pakistan and Thailand support the tax-and-spend hypothesis; India, Singapore and Sri Langka are supporting spend-and tax hypothesis; and Malaysia, Philippine and South Korea's government revenue and government spending are independent.

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