The Impact of Government Spending on the Main Macroeconomic Variables

Resumen

This study re-examines the macroeconomic effects of government spending in the case of Guatemala by estimating a Vector Autoregressive Model with exogenous variables (VAR-X) with quarterly data spanning from 2011q1 to 2019q4. The study
found empirical evidence that government spending has a positive impact on output, private consumption, and gross capital formation. However, there is not statisticalevidence that government spending increase neither exports nor openness to trade
in the case of Guatemala.