期刊名称：International Journal of Economics and Finance
印刷版ISSN：1916-971X
电子版ISSN：1916-9728
出版年度：2013
卷号：5
期号：10
页码：111
DOI：10.5539/ijef.v5n10p111
出版社：Canadian Center of Science and Education
摘要：With this paper, we investigate the link between spending and revenue for the Lao PDR during the period of 1980 to 2010. We apply an approach that uses cointegration and an autoregressive distributed lag (ARDL) combined with a Granger causality within a vector error correction framework (VECM). The results disclose that a long-run causality exists between government spending and revenue. This causality is unidirectional from spending to revenue, which supports the spend-and-tax hypothesis. Our results can help policy makers determine whether government spending is primarily the outcome of an increase in tax revenue necessary to finance the spending.
