THE IMPACT OF THE GOVERNMENT REVENUE AND EXPENDITURE ON THE ECONOMIC GROWTH IN MYANMAR

The study focuses on investigation of co-integration between revenue and expenditure of government and GDP growth. The study aims to find to examine the relationship and causality between government revenue and expenditure. The Ordinary Least Square (OLS) regression results show that an expending expenditure raise government revenue, and both are positively related in Myanmar. According to the Granger Causality test, Government expenditure cause revenue and revenue also cause expenditure. According to Auto-regressive Distributed Lag (ARDL) bound test, the government expenditure have positive influence on GDP growth in the long run and negative influence in the short run. The government revenue has effect on GDP growth negative in the short run and positive in the long run. Besides, they have co-integration and long-run relationship in Myanmar economy. Keywords: Myanmar, GDP Growth, Government Revenue and Expenditure, co-integration