TY - JOUR ID - 14081 TI - Effects of Oil Returns and External Debt on the Government Expenditure: A Case Study of Syria JO - Management Studies and Economic Systems JA - MSES LA - en SN - 2408-9583 AU - Shakeeb Mohsen, Adel AD - University of Sains Malaysia, Penang, Malaysia Y1 - 2016 PY - 2016 VL - 2 IS - 3 SP - 181 EP - 188 KW - Syria KW - Government Expenditure KW - Oil returns KW - External debt KW - VAR DO - N2 - This study attempts to investigate the effect of oil returns and external debt on the government expenditure in Syria over the period 1970-2010. The Johansen cointegration test showed that oil returns and external debt have a positive and significant long run relationship with government expenditure. The Granger causality test indicates unidirectional short-run causality relationships running from oil returns and external debt to government expenditure. There are also unidirectional long-run causality relationship running from oil returns to government expenditure, and bidirectional long-run causality relationship between external debt and government expenditure. The IRFs indicate that when there is a shock to oil returns or external debt, the government expenditure will respond positively in the following years. The study result indicates that, oil returns have the biggest effect on the government expenditure, and both oil returns and external debt can play an important role in supporting the Syrian economy by financing the government expenditure.  UR - https://www.msaes.org/article_14081.html L1 - https://www.msaes.org/article_14081_db632f287963076a9e9ce5ac305ac8d0.pdf ER -