{"id":8125,"date":"2023-08-10T10:52:32","date_gmt":"2023-08-10T02:52:32","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&p=8125"},"modified":"2024-02-02T18:14:38","modified_gmt":"2024-02-02T10:14:38","slug":"effectiveness-of-fiscal-policy-in-stimulating-gdp-growth","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\/","title":{"rendered":"Effectiveness of Fiscal Policy in Stimulating GDP Growth"},"content":{"rendered":"

This study examines the effectiveness of fiscal policy in stimulating the GDP growth. It further determines the most effective channel for growth stimulation. We use Structural Vector Autoregressive (SVAR) model on Kenyan quarterly time series data from 2006 to 2019 to track the response of GDP growth to fiscal policy. The findings reveal that, fiscal policy is effective for growth stimulation only when tax revenue and public debt are used. We find government expenditure is insignificant in influencing growth in Kenya while inflation rate having negative effects on growth. Relative to government expenditure and tax revenue, public debt was found to be the most effective fiscal policy item for growth stimulation. To realize increased growth in Kenya, this study recommends the use of an expansionary fiscal policy through tax revenue and public debt with proper control on inflation.<\/p>\n","protected":false},"template":"","tags":[603,1632,1634,1633],"jel-code":[1635,1636,1422,1269,1423,1637],"article-type":[1329],"class_list":["entry","author-asriwn","post-8125","article","type-article","status-publish","tag-fiscal-policy","tag-gdp-growth","tag-kenya","tag-svar","jel-code-b2","jel-code-e3","jel-code-e32","jel-code-e61","jel-code-e62","jel-code-e63","article-type-normal-article"],"yoast_head":"\nEffectiveness of Fiscal Policy in Stimulating GDP Growth | Jurnal Ekonomi Malaysia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ukm.my\/jem\/article\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Effectiveness of Fiscal Policy in Stimulating GDP Growth | Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"og:description\" content=\"This study examines the effectiveness of fiscal policy in stimulating the GDP growth. It further determines the most effective channel for growth stimulation. We use Structural Vector Autoregressive (SVAR) model on Kenyan quarterly time series data from 2006 to 2019 to track the response of GDP growth to fiscal policy.Continue Reading\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ukm.my\/jem\/article\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\/\" \/>\n<meta property=\"og:site_name\" content=\"Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-02T10:14:38+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@EkonomiJurnal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\\\/\",\"name\":\"Effectiveness of Fiscal Policy in Stimulating GDP Growth | Jurnal Ekonomi Malaysia\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\"},\"datePublished\":\"2023-08-10T02:52:32+00:00\",\"dateModified\":\"2024-02-02T10:14:38+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Effectiveness of Fiscal Policy in Stimulating GDP Growth\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"name\":\"Jurnal Ekonomi Malaysia\",\"description\":\"Universiti Kebangsaan Malaysia\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\",\"name\":\"Jurnal Ekonomi Malaysia\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"contentUrl\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"width\":512,\"height\":308,\"caption\":\"Jurnal Ekonomi Malaysia\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\",\"https:\\\/\\\/x.com\\\/EkonomiJurnal\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Effectiveness of Fiscal Policy in Stimulating GDP Growth | Jurnal Ekonomi Malaysia","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ukm.my\/jem\/article\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\/","og_locale":"en_US","og_type":"article","og_title":"Effectiveness of Fiscal Policy in Stimulating GDP Growth | Jurnal Ekonomi Malaysia","og_description":"This study examines the effectiveness of fiscal policy in stimulating the GDP growth. It further determines the most effective channel for growth stimulation. We use Structural Vector Autoregressive (SVAR) model on Kenyan quarterly time series data from 2006 to 2019 to track the response of GDP growth to fiscal policy.Continue Reading","og_url":"https:\/\/www.ukm.my\/jem\/article\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\/","og_site_name":"Jurnal Ekonomi Malaysia","article_publisher":"https:\/\/www.facebook.com\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485","article_modified_time":"2024-02-02T10:14:38+00:00","twitter_card":"summary_large_image","twitter_site":"@EkonomiJurnal","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.ukm.my\/jem\/article\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\/","url":"https:\/\/www.ukm.my\/jem\/article\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\/","name":"Effectiveness of Fiscal Policy in Stimulating GDP Growth | Jurnal Ekonomi Malaysia","isPartOf":{"@id":"https:\/\/www.ukm.my\/jem\/#website"},"datePublished":"2023-08-10T02:52:32+00:00","dateModified":"2024-02-02T10:14:38+00:00","breadcrumb":{"@id":"https:\/\/www.ukm.my\/jem\/article\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.ukm.my\/jem\/article\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.ukm.my\/jem\/article\/effectiveness-of-fiscal-policy-in-stimulating-gdp-growth\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.ukm.my\/jem\/"},{"@type":"ListItem","position":2,"name":"Articles","item":"https:\/\/www.ukm.my\/jem\/article\/"},{"@type":"ListItem","position":3,"name":"Effectiveness of Fiscal Policy in Stimulating GDP Growth"}]},{"@type":"WebSite","@id":"https:\/\/www.ukm.my\/jem\/#website","url":"https:\/\/www.ukm.my\/jem\/","name":"Jurnal Ekonomi Malaysia","description":"Universiti Kebangsaan Malaysia","publisher":{"@id":"https:\/\/www.ukm.my\/jem\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ukm.my\/jem\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.ukm.my\/jem\/#organization","name":"Jurnal Ekonomi Malaysia","url":"https:\/\/www.ukm.my\/jem\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ukm.my\/jem\/#\/schema\/logo\/image\/","url":"https:\/\/www.ukm.my\/jem\/wp-content\/uploads\/2021\/05\/cropped-browser-icon-letter-1.png","contentUrl":"https:\/\/www.ukm.my\/jem\/wp-content\/uploads\/2021\/05\/cropped-browser-icon-letter-1.png","width":512,"height":308,"caption":"Jurnal Ekonomi Malaysia"},"image":{"@id":"https:\/\/www.ukm.my\/jem\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485","https:\/\/x.com\/EkonomiJurnal"]}]}},"_links":{"self":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/8125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article"}],"about":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/types\/article"}],"version-history":[{"count":1,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/8125\/revisions"}],"predecessor-version":[{"id":8132,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/8125\/revisions\/8132"}],"wp:attachment":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/media?parent=8125"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/tags?post=8125"},{"taxonomy":"jel-code","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/jel-code?post=8125"},{"taxonomy":"article-type","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article-type?post=8125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}