Off-campus UNL users: To download campus access dissertations, please use the following link to log into our proxy server with your NU ID and password. When you are done browsing please remember to return to this page and log out.
Non-UNL users: Please talk to your librarian about requesting this dissertation through interlibrary loan.
A study of the influences on the growth of government expenditures in Korea, 1962-1986
Abstract
In this study we examined the relationships between the growth of government expenditure share in GNP and several socio-economic factors in a rapidly developing country, Korea, using data covering the period from 1962 through 1986. As background for examining potential causal factors for this growth, the growth of the Korean economy and the development of its economic structure were examined. The methodology employed in our analysis was the Granger framework for causality tests. This method provides us with a quite different technique for posing causal inferences as compared with covariation analyses imbedded in the simple ordinary least squares (OLS) regression method which has been traditionally employed in the existing literature. As applied here, the methodology does not identify ultimate causes but does indicate factors which appear to have an immediate influence on government expenditures and vice versa. The results of our Granger causality tests showed that all the potential causal factors significantly influenced the government expenditure share, confirming the validity of some existing theories on the growth of government. The study also indicated that the explanatory variables were influenced by the changing government expenditure share. That is, the relationship between the expenditure share and each of the variables has been that of mutual reinforcement. Accordingly, the major finding of this study is that the government expenditure share and the variables studied enjoyed a bidirectional relationship. This point of bidirectional relationship distinguishes the present study from the existing studies in the literature. Most of the extant studies have not dealt with the explanatory variables properly in that they implicitly assumed a unidirectional causality and then applied regression analysis. This may have produced biased and/or inconsistent estimates of parameters in measuring the effects of some potential causal factors on the government expenditure share. This study has developed evidence of bidirectional relationships, of a much more complicated reality than what was suggested or used in many existing studies.
Subject Area
Finance
Recommended Citation
Chung, Sook-Jong, "A study of the influences on the growth of government expenditures in Korea, 1962-1986" (1989). ETD collection for University of Nebraska-Lincoln. AAI8914071.
https://digitalcommons.unl.edu/dissertations/AAI8914071