The impact of government expenditure on the economic growth of Bangladesh
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The examination of the relationship among the variables such as between GDP, general government expenditure and military expenditure. The essence of the study is that it identifies the factors those working to the development of the growth of the country and those are not. Also, the components of the government expenditure accelerating the GDP of the country. It is important to conduct several functional areas in order to reach the conclusion of the relationship among the variables. It is arguably important to collect the data and run the econometric model. Data from the world bank and Bangladesh bank revealed the following results when conducting the regression analysis Different tests and different results are used to conclude the findings. Firstly, it can be easily said that independent variables are clearly explaining the dependent variable. From the enough study it has also been recognized the independent variables are enough to explain the dependent variable. From the tests and results, it has been found that changes in the independent variables cause change in the dependent variable indicating if GGE and ME rise then GDP rise in the same direction whereas if the GGE and ME decrease then GDP decreases. From the Johansen test of co integration it has been clear that there is no co integrating equation among the variables and from the result of the granger causality test it has been established that independent variables cause the dependent variable. In connection with the numeric analysis, there are also several theoretical analyses all are implying a positive relationship among the variables. The theoretical understanding of the concepts and other areas helped a lot to the congruence of the result found in case of numeric analysis. Once again, the final aim is to find the relationship between government expenditure and economic growth which has been revealed as positive. Indicating that if the government expenditure rises the GDP increases and vice versa. So, to enhance the GDP of Bangladesh it is recommended to increase the level of expenditure. The policymakers should emphasize in this sector for a better future of the country.
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