Government revenue and expenditure nexus in South Africa
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Date
Authors
Nyamongo, M.E. (Nyamongo Esman)
Sichei, Moses Muse
Schoeman, N.J. (Nicolaas Johannes)
Journal Title
Journal ISSN
Volume Title
Publisher
Juta
Abstract
This paper investigates the nexus between government expenditure and government revenue in South Africa within the framework of a vector autoregressive (VAR) approach. It uses the Hylleberg et al. (1990) method to test for seasonal unit roots and finds that government revenue and government expenditure have unit roots at all frequencies. The Johansen procedure test results reveal that these variables are cointegrated. It is further established that revenue and expenditure are linked bidirectionally by Granger causality in the long-run, while there is no evidence of Granger causality in the short-run in South Africa.
Description
Keywords
South African government expenditure, South African government revenue, Vector autoregressive (VAR) model, Granger causality
Sustainable Development Goals
Citation
Nyamongo, ME, Sichei, MM & Schoeman, NJ 2007, 'Government revenue and expenditure nexus in South Africa', South African Journal of Economic and Management Sciences, vol. 10, no. 2, pp. 256-269. [http://www.journals.co.za/ej/ejour_ecoman.html]