The Impact of Public Spending on Economic Growth in Libya

An Econometric Study for the Period (1980-2020)

Abstract

The study aimed at clarifying the association between general expenditure and economic growth in an attempt to demonstrate the effects of public spending on the national economy during the period (1980-2020) using the ARDL model. The results found a co-integration relationship among the study variables in the long run, and the general expenditure has a positive linkage with GDP in the long and short terms. It is also the results showed that the error correction parameter is 0.62, which was significant at the level 1% of significance and with a negative sign, this supports the equilibrium relationship between variables in the short term , The study recommended paying attention to public spending because of its positive effects on the gross domestic product and adhering to public spending controls to achieve the desired goals.