Government Expenditure and Economic Growth: Evidence for Singapore, Hong Kong China and Malaysia

The relation between government expenditure and economic growth has been extensively investigated by the use of different models. This thesis analyzes the potential of government expenditure to significantly influence the economy in four Asian regions: China, Hong Kong, Malaysia and Singapore. The model used is the fixed effects panel OLS model. The empirical results demonstrate a negatively significant influence of government expenditure on social and general development on the economy and a positively significant influence of government expenditure on economic development on the economy