Acta Universitatis Danubius. Œconomica, Vol 13, No 2 (2017)

Abstract

This study reviewed literature studies on the determinants of government expenditure for the period 1995 to 2016. The research for the studies was conducted on the internet by combining government expenditure and determinants such as economic growth, government revenue, trade openness, poverty, public debt, dependency ratio, population, and urbanisation on the search engine. The finding of the literature provides conflicting results concerning the determinants of government expenditure. The results indicate that the government expenditure relationship with its determinants is significantly positive and negative, but in some cases it was found to be insignificant and weak. The study recommends that future studies use the newly developed econometric techniques on previous studies to see whether they can provide different results.