The Effect of Government Expenditures and Private Investment on Thai Economic Growth

Abstract

This research aimed to study the economic relationship between government expenditures, private investment and gross domestic product at 1988 prices (GDP). The study was conducted on by using the quarterly time series data during the period of 1996- 2010, from Office of The National Economic and Social Development Board. The study used Econometric model: Vector Autoregressive Model (VAR) to estimate the relationship of these variables. The results shown that Thailand’s economic dynamics has been influenced statistically significant changes by the Keynesian’s Economics thought. The intervening by using government expenditures influenced matters for Thailand’s economic dynamics or GDP more than private investment over the past years.