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Since there is a direct relationship between GDP and unemployment rate, this fiscal policy instrument will be very helpful for Ministry of Labor in preparing its annual strategies in decreasing the unemployment rates. In addition, this study will benefit the Ministry of National Economy in choosing the projects that should be given licenses, in particular, the ones that enhance the economy growth the most. In addition, this will help the individuals as being part of the labor force to determine how and where to invest their money so as to help in achieving better GDP growth.
This study will be analyzing the impact of government expenditures as a total and its components on the economic growth in Palestine It will have an important limitation, which will be the shortness of the time series that will be taken in analyzing the impact of the government expenditures on the GDP.
The time series coverage will be since the Palestinian Authority was established in as a result of the Oslo Accords between the Palestine Liberation Organization and Israel. The study will be based on secondary annual data of total government expenditures and its components from the Ministry of Finance whereas the GDP, capital estimated using the ICOR approach and employment to be taken from the Palestinian Central Bureau of Statistics.
This study will be consisting of two models. The dependent variable of the first model will be the GDP whereas the independent variables will be capital, labor force, technology and total government expenditures Mohammadi, Maleki and Gashti As for the second model GDP will be the dependent variable while labor, capital, technology and the components of government expenditures will be the independent variables Bader, According to the Ministry of Finance government expenditures in Palestine are divided into four types; expenditures on wages and salaries, non- wage expenditures, net lending and development expenditures.
These four types will form the independent variables of the second model. The stationarity of the two models will be first tested using Augmented Dickey-Fuller and Phillips-Perron unit root test for stationarity. Then the impact of government expenditures as a total and its components on the GDP will be examined using multiple regression analysis where the R2, F-test and t- test will be calculated.
Wages and salaries expenditures. This study will consist of five chapters. Chapter one will contain seven sections: Chapter two will outline the theoretical background and a literature review of previous studies that have the same problem of this study. Chapter three will be a detailed descriptive analysis of the data on the variables of interest focusing on the allocation of the government expenditures.
Chapter four will be analyzing the data statistically. It will contain detailed description of the methodology of the study with the models to be estimated addressed in functional forms using symbols representing the dependent variable along with the independent variables.
Finally, the estimated models will be discussed and tested economically and statistically in order to highlight the impact of government expenditures along with its components on economic growth.
Chapter five will give the final conclusions of the study and the recommendations that will be addressed to the competent authorities. Administrative Sciences, Volume 39, No. Journal of Political Economy.
As in Altaf, N. Shodh Anusandhan Samachar, Vol. Accessed on November 14, from: As in Modebe, N. Accessed on November 10, from: Principles of macroeconomics, 10th ed. Accessed on December 20, from: Progress in Development Studies, pp.
Accessed on December 2, from: Accessed on November 15, from: General Theory of Employment, Interest and Money. As in Desmond, N.
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View: A2 Model essays One thought on “ Macro Economic Notes and Essays You are welcome to ask any questions on Economics. I try and answer on this blog. Ask a question. About the Author. Tejvan studied PPE at LMH, Oxford University and works as an economics teacher and writer.
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