Public spending and its impact on gross domestic product in Libya

GDP represents one of the main sources of national income in Libya, this output contributes by at least (83.7%) of the gross national income of the state. Libya's economy has witnessed a remarkable development over the past (1990-2009m) supported by the increase of large oil revenues caused by the escalation of prices in the international market, and also the growth of produced quantities of oil during the period(1990-2009), this led to a rise in the pace of economic activity due to the implementation of large and private government projects, where the gross domestic product at current prices rose from (28253) billion dinars in (1990) to (49854) billion dinars in(2009),all this led to exceed the growth rate percentage (77%), in other words, that the gross domestic product in Libya has doubled more than half times over the past(1990-2009AD). As a result of the analysis of standard forms to search, there is a strong influence on the public spending on GDP, as the increase in public spending in Libya million dinars leads to increase of GDP (1.398) million, and public spending contributes to percentage (78%) in explaining the changes occurring in gross domestic product and their interpret, the results of estimating standard models have shown that there is a significant effect on public spending on both components of main and secondary to GDP.