The impact of current and construction expenses of the government on the growth of national income and its distribution in Iraq
Subject Areas : Bi-quarterly Journal of development economics and planning
maryam emamimibodi
1
,
Hossein Jassim Mohammad Al-Satani
2
1 - Department of Accounting, Islamic Azad University, Shahinshahr Branch, Isfahan, Iran
2 - Department of Economic, Islamic Azad University, Isfahan (Khorasgan) Branch, Isfahan, Iran
Keywords: government current expenditures, government construction expenditures, national income growth, national income distribution (Gini coefficient),
Abstract :
One of the important economic goals of governments is to achieve the growth of national income and fair distribution of income. In meeting these goals, governments should use financial policy tools such as; Current and construction expenditures should be used for fair distribution of income and control of extreme fluctuations in per capita incomes and ultimately the growth of national income. In this research, the aim of this research is to investigate the impact of current expenditures and construction expenditures of the government on the growth of national income and the Gini coefficient in Iraq, and the VAR method has been used in the returns from 2006 to 2021. The results of the research indicated that; The impact of government current expenditures and government construction expenditures have had a positive and significant impact on the growth of Iraq's national income, but only government construction expenditures have had a positive and significant impact on the income distribution index (Gini coefficient). The results of the variance analysis of the research models show that the greatest impact on the growth of national income and the Gini coefficient is from the side, respectively; economic growth and oil income, and the lowest impact on the two variables of national income growth and the Gini coefficient is related to government construction costs. Therefore, the planners in the country should pay attention that, for the economic growth of this country, the redistribution policies of the oil income of this country should be chosen in principle and optimally.
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