政府支出的大小,是影响长期经济增长,反之亦然几十年来一直持续利益的问题(科内尔,Bleaney & Gemmell,2004)(Nijkamp &·珀,2004)。然而,最近的宏观经济活动,如2007/08年亚洲金融危机之后,大多数经济体的影响最大,采用了增加政府支出的关键技术之一是采用以提高经济效益。然而,先前的研究已经发现混合提供的经验证据之间的关系政府支出和经济增长的经济体的水平(Kolluri,迈克尔& Mahmoub,2000)。
The Gross Domestic Product (GDP) in Canada expanded 2.45 percent in the second quarter of 2014 over the same quarter of the previous year. GDP Annual Growth Rate in Canada averaged 3.29 Percent from 1962 until 2014, reaching an all time high of 8.80 Percent in the first quarter of 1962 and a record low of -3.70 Percent in the fourth quarter of 1982. GDP Annual Growth Rate in Canada is reported by the Statistics Canada.
The size of government expenditure and it is effects on the long-run economic growth and vice versa has always been an issue of sustained interest for decades (Kneller, Bleaney & Gemmell, 2004) (Nijkamp & Poot, 2004). However, recent macro-economic activities like after the 2007/08 financial crisis, most economies that were most affected are known to have adopted increased government expenditure as one of the key techniques that were adopted to boost economic performance. However, empirical evidence provided by previous studies has mixed findings on the relationship between government spending and the levels of economic growth in economies (Kolluri, Michael & Mahmoub, 2000).
In this study, government expenditure can be classified into two different groups which include: recurrent expenditure and capital expenditure. This leads to the development of two key research questions: “What is the relationship between re-current government spending and economic growth?” and “What is the relationship between recurrent government expenditure and economic growth?”
In this study, economic growth is the dependent variables while the government re-current expenditure and the government capital expenditure are the independent variables (Wahab, 2004).