StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

(help me make the topic) - Research Proposal Example

Comments (0) Cite this document
Summary
Government expenditure include a government’s spending on health care, education, infrastructure, security, public servants’’ salaries and other services which it offers to the public. GDP…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.4% of users find it useful
(help me make the topic)
Read TextPreview

Extract of sample "(help me make the topic)"

Research Proposal Effect of Government Expenditure on Economic Growth of USA Introduction Government expenditure is avital component of gross domestic product (GDP). Government expenditure include a government’s spending on health care, education, infrastructure, security, public servants’’ salaries and other services which it offers to the public. GDP measures economic growth. Government expenditure is a good measure of the level of influence which the government has on the economy. A strong relationship between government expenditure and economic growth shows that the economy is highly dependent on the government. A weak relationship shows that the government has little influence of economic affairs of a country. Researchers have had varying opinions on this subject. The purpose of this research is to determine the impact of government expenditure of economic growth of USA in order to eliminate the confusion revolving around this phenomenon.
Research Objectives
To determine whether there is any relationship between government expenditure and economic growth in USA
To find out the effect of government expenditure on economic growth in USA
Research Questions
Is there is any relationship between government expenditure and economic growth in USA?
What is effect of government expenditure on economic growth in USA?
Literature Review
USA has the largest national economy. Its nominal GDP was estimated to be $15.8 trillion in the third quarter of 2012. This represents a quarter of the global nominal GDP. The 2007 credit crunch in the world began in the US economy leading to serious economic problems such as increased levels of unemployment and high levels of public debt. This led to increased government intervention in the economy to fasten recovery from the recession. Government intervention came in the form of increased expenditure in stimulus programs and change of macroeconomic policies. The total expenditure in 2012 was $3.796 trillion and has been on the increase throughout the past decade (Federal Reserve Bank of St. Louis 24).
According to Keynesian economics, an increase in government expenditure causes an increase in GDP via the multiplier effect. According to Keynes, GDP is a function of consumption expenditure, investment expenditure, government expenditure and net exports. There is therefore a positive relationship between a government expenditure and economic growth (Stefan and Magnus 1510). However, researchers have had different views on this subject. According to by Richard Rahn, government spending lead to increased economic growth up to some optimal level above which the economy begins to contract. Proponents of the Rahn curve theory suggest that optimal government expenditure should be between 15% and 25% of GDP (Surhone, Tennoe, Henssonow 10). In a study comparing the Anglo-American Model and European Models, James, Robert and Randall (20) studies the impact of government structure and size on economic development. The paper concludes that the government is able to enhance growth by increasing this variable. Nevertheless, too much of its influence retards growth as government utilizes more and severely reverses the gains of the advanced incentive structure. Chi-Hung and Hsu (451) in their research titled "The Association between Government Expenditure and Economic Growth: Granger Causality Test of US Data, 1947~2002" conclude that government expenditure should be increased with the main object being economic growth. There study’s results are consistent with Keynesian’s theory which shows a similar relationship.
Methodology
The study will employ secondary data of economic variables such as the government spending and GDP from the year 1970 to 2000. This period was not marked by major economic turbulences such as world wars and economic downturns. Correlation analysis will be employed to determine whether there is any relationship between government expenditure and economic growth in USA. To find out the effect of government expenditure on economic growth in USA, a regression model will be estimated in the form of Y = C + I + G + (X − M) where; C = consumption, I = private investment, G = government spending, (X − M) = Net exports and Y = GDP. This model will be a good predictor of GDP from levels of economic growth.
Works Cited
Chi-Hung, Louis and Chiehwen Hsu. "The Association between Government Expenditure and Economic Growth: Granger Causality Test of US Data, 1947~2002" Journal of Public Budgeting, Accounting, and Financial Management 20.4 (2008): 439-452.
Federal Reserve Bank of St. Louis. “National Economic Trends (Nominal GDP)" December 20, 2012.
James, Gwartney, Lawson Robert, and Holcombe Randall. The Size and Functions of Government and Economic Growth. Joint Economic Committee. U.S. Congress. April 1998, p. 20.
Stefan, Fölster and Henrekson Magnus. "Growth Effects of Government Expenditure and Taxation in Rich Countries." European Economic Review, Vol. 45, No. 8 (August 2001), pp. 1501-1520.
Surhone, Lambert, Mariam T. Tennoe, Susan F. Henssonow. Rahn Curve. London: Betascript Publishing, 2010. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“(help me make the topic) Research Proposal Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1613512-help-me-make-the-topic
((help Me Make the Topic) Research Proposal Example | Topics and Well Written Essays - 500 Words)
https://studentshare.org/miscellaneous/1613512-help-me-make-the-topic.
“(help Me Make the Topic) Research Proposal Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1613512-help-me-make-the-topic.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF (help me make the topic)

Make up a topic for me

...been greatly influenced by Buddhism. It was painted by Ding Ynpeng and is one of the earliest Chinese paintings showing a Buddhist monk in a tree. This painting is different from other Chinese paintings of the 13th century as it is displayed in bright color showing vitality and liveliness. This is because Lohan means enlightened being and the painter clearly shows this theme. An important thing to observe about these painting is that although the dead were originally from India, the Chinese artists have made their own modifications and innovations that make the images to be more authentic (Kieschnick, 140). From the 1st century to the 18th century, Chinese artists have continued to depart from the original Indian...
5 Pages(1250 words)Essay

Make for me....plz

... Dysfunctional familial set up in McNickle's The Surrounded D'Arcy McNickle's The Surrounded enjoys a wide readership today and has attracted a lot of critical acclaim as well because of its simple, lucid writing and fast-paced intensity. The Surrounded is a moving account of Archilde Leon's process of confronting his culture, his parents, and the white culture's influence after his return to the reservation. Much of the novel's tensions centers around Archilde's conflicting desires of "coming home" or leaving the reservation for good. This tension is embodied in his relationship with his father, Max Leon, a Spaniard who settled in the valley, married an Indian woman, and had several children before becoming estranged from them... Dysfunctiona...
2 Pages(500 words)Essay

The responsibility of being a teacher

...problem which causes difficulty for them to understand the topic. I also find it advantageous to organize class discussions. These discussions may give a proper picture of students' performance as a whole and in isolation. All these techniques would help me to build a learning environment in the class. It would help the students to understand the previous topic more closely. The questions being asked in the class regularly would help me to analyze the prevailing situation of the students. And I would act according to the situation so as to make them understand the sections of the...
3 Pages(750 words)Personal Statement

Make for me

...that politicians and businessmen did in the history of Canada. For me, the case is not only true for Sir John A. Macdonald, but also to countless other men who have done corruption and performed wrongdoings to the country. She begins the poem quite ironically, “Dear John: I’m still here and halfbreed,” the irony is because she is proud to say upfront that she is a halfbreed, while other people look down on such halfbreeds. She has also emphasized her being a halfbreed, or Metis blood meaning that she is a mix of Caucasian and American Indian ancestry, in the ending where she says “we’re still here and calling ourselves halfbreed”. In order to properly appreciate this poem, one must have some knowledge of Canadian...
2 Pages(500 words)Essay

Can you make a topic for me

...to admit to his condition” (Ibid). So, is marrying someone not belonging to your own race a manifestation of self-hate? Let us see from this story once told to me… Lolita is a graduate of Business Administration from one of the private universities in Manila, the capital city of the Philippines. She worked as a travel consultant in one of the prominent travel agencies in Manila. Aside from being intelligent and sociable, Lolita looks “mestiza” making her attractive even to her foreign clients. But from among her suitors, she fell in love with a Japanese, who was assigned then in the Philippines and who, she did not know, was the only son of an old-rich family in Japan. Thus, her parent-in-law to be is...
4 Pages(1000 words)Assignment

Make me a Millionaire

...Make me a Millionaire Financial freedom is what many aspire to achieve as the case suggest on needs steady income to achieve this goal. One need to be active, healthy and knowledgeable as far as personal finance is a concern to be able to achieve financial independence at the age of 55. The most notable aspect is identifying a financial advisor who will give an over view of how to sustain wealth, creating income through diversification, where to save, which investment to take and which not to take and most importantly being risk averse (Toten 78). My fast goal as financial advisor is to commend your financially achievement by having an income is an excellent start for a young person of this age. My...
3 Pages(750 words)Coursework

Help me make a topic

...in Asian countries such as Vietnam. The signing of the 1973 peace accord in Vietnam also accelerated the development of neo-liberalism in the country. Vietnam took advantage of their new style of governance, and began to produce coffee enmass. Their coffee was cheap, and this is because of the availability of cheap labor in the country. The climate of the country was also conducive for the production of coffee beans. Because of their cheap coffee beans, companies such as Proctor and Gamble, Nestle and Phillip Morris began to purchase their products, at the expense of traditional coffee producing countries such as Columbia (Peyser and Bill, 54). These companies were motivated by their needs of making profits, and the...
4 Pages(1000 words)Essay

Help me make a topic

...this continent. Africa is special case as the effects of globalization can be observed vividly, in the past, present and unfortunately, in the future. All of which does cast ominous shadows on the overall modern globalization. Another thing that makes Africa a special case for contemporary globalization is the fact that many of the African states have never really enjoyed sovereignty (Kieh 98). The term Parenti uses relentlessly in his book is ‘catastrophic convergence’, and it similar to the tactics that were used in 1984 in India. Allegedly, the deliberate leakage of MIC from an American pesticide plant in Bhopal, India, left almost half a million people dead. There are rumors that it was a done on...
7 Pages(1750 words)Essay

Make me believe you

...Euthanasia College: Medicine is becoming more and more powerful every year. Some of diseases and injuries, however, cannot be treated even today. As a result, a great number of people have to put up with it, endure severe pain, live owing to a feeding tube and wait till their suffering is over. These people have to anguish because there is no other way to deal with it. I believe that such people have the right to decide when and how they want to stop suffering. In other words, I believe that euthanasia should be allowed. First of all, it is the matter of human rights. Every person has a right to life. So why do not they have a right to decide what to do with their life and when and how it should end, especially if to take... College:...
1 Pages(250 words)Essay

Make a topic for me

... Critical review: Breaking the Chains of Psychological Slavery Na’im Akbar s in his book that “One of the things that helps us correct our problems naturally, is an understanding that though we have great strength, we also have real limitations. One of the things that lets human beings come back to balance, is a realization that there are things that naturally limit them”. The book “Breaking the Chains of Psychological Slavery” takes the reader through a discussion of the continuing detrimental effects of the slave trade and slave ownership on the African American community. The author, who is a notable scholar and instructor of clinical psychology, touches on important constraints that are keeping the African American community... arguments...
4 Pages(1000 words)Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Proposal on topic (help me make the topic) for FREE!

Contact Us