East Asia

, Volume 31, Issue 3, pp 203–221 | Cite as

The Relationship Between Revenue and Expenditure in the ASEAN Countries

Article
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Abstract

The aim of this study is to assess the relationship between revenue and expenditure in the ASEAN countries. Using annual data for the period between 1980 and 2012 in ten member states, a long-run relationship between government expenditure and revenue emerges, both in ASEAN-6 and ASEAN-10 countries. Granger causality analysis shows mixed results, even though for five ASEAN countries the predominance of “tax-and-spend” hypothesis exists, given that government revenue drives the expenditure. Moreover, mixture models seem to produce homogeneous groups, considering the socio-economic structure, welfare state, and historical aspects. Finally, convergence measures show interesting results, confirming the sample’s heterogeneity.

Keywords

ASEAN South-East Asia Economic growth Government expenditure Government revenue Panel 

JEL

B22 C33 E62 F33 

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Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  1. 1.Department of Political SciencesRoma Tre UniversityRomeItaly

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