Original scientific paper
https://doi.org/10.1080/1331677X.2015.1028241
Causality between public wage bill, exports and economic growth in Slovenia
Maja Trošt
Štefan Bojnec
Abstract
This article aims to investigate the causal relationship between economic growth, exports and public wage bill spending, using the Johansen cointegration, Granger causality test, variance decomposition (VDC) and impulse response function (IRF). The empirical investigation focuses on the case of a small open and export-oriented Slovenian economy, where public wage bill spending accounts for a sizable share of public xpenditure. The results show a significant impact of public wage bill
spending on exports. Reduction of public wage bill spending should be adapted to the circumstances in the economy to assure financial consolidation.
Keywords
causality; public wage bill; export; economic growth; cointegration; Granger causality; variance decomposition (VDC); impulse response function (IRF); Slovenia
Hrčak ID:
171492
URI
Publication date:
20.12.2015.
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