An Empirical Note on Government Expenditure and Imports: an ARDL Cointegration Investigation
| RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2010 - 2
By focusing on the relationship between fiscal policy and the trade account this study will attempt
to provide an insight into the empirical merits of the relationship between government expenditures
and imports. To this aim an ARDL cointegration approach has been applied for the first time
to a dataset spanning the Greek economy from 1970 to 2007 . The results obtained provide valuable
insights into the direct effect of changes in government expenditure on import demand.
Key words: government expenditure, trade account, ARDL, cointegration.
JEL Classification: F32, E62.