Author(s): Vithessonthi Donghyun, Kasetsart University
The idea that greater government uses can animate development is as yet dubious. A few scientists tracked down sure connection between government uses and development with bidirectional causation, while others showed that development caused government spending to grow. The causation between government consumptions and financial development in Thailand was analyzed utilizing the Granger causality test. There was no cointegration between government consumptions and financial development. A unidirectional causality from government consumptions to financial development existed. In any case, the causality from financial development to government uses was not noticed. Besides, assessment results from the common least square affirmed areas of strength for the effect of government spending on financial development during the time of examination.