The Link between Government Spending, Consumer Confidence and Consumption Expenditures in Emerging Market Countries


ÖZERKEK Y. , ÇELİK S.

PANOECONOMICUS, cilt.57, sa.4, ss.471-485, 2010 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 57 Konu: 4
  • Basım Tarihi: 2010
  • Doi Numarası: 10.2298/pan1004471o
  • Dergi Adı: PANOECONOMICUS
  • Sayfa Sayıları: ss.471-485

Özet

The impact of government spending on private consumption is extensively studied in the literature. However, the main theme of these studies is the possible crowding-in or crowding-out impact of government spending on consumer spending. This paper attempts to introduce a new variable to this well-known literature by investigating the existence of a relationship between government expenditure, consumer spending and consumer confidence for a group of emerging market countries. We examine whether a change in consumer confidence causes any change in government spending. Moreover, we analyze whether there is a feedback from government spending and private consumption to consumer confidence. Our empirical findings demonstrate the important role of consumer confidence on government spending and private consumption expenditures.