IJCRR

IJCRR - 5(22), November, 2013

Pages: 6-26

Date of Publication: 04-Dec-2013

FISCAL DEFICIT AND ECONOMIC GROWTH IN THE GAMBIA

Author: Emmanuel Ating Onwioduokit, Godwin E. Bassey

Category: General Sciences

Abstract:The key objective of this paper is to empirically ascertain whether fiscal deficit enhance or retard economic growth in the Gambia between the period 1980 and 2009. The empirical results obtained from the estimation exercise are fairly robust and satisfactory, in that the variables conformed largely to a priori expectation in terms of statistical significance. The empirical results show that fiscal deficit affects the real economic growth positively and significantly with a lag of one year. The sign of the parameter estimate conforms to the presumptive expectation, given that the fiscal deficit in the Gambia was essentially used in financing economic and social infrastructure during the study period. Thus the results support the Keynesian assertion that fiscal deficits have positive impacts on economic growth.

Keywords: Fiscal Deficit, Economic Growth, The Gambia

Full Text:

INTRODUCTION
The impact of fiscal deficits on economic output has been the subject of extensive research over the past eight decades. The debate on the issue is far from settled.  However three unique views on the debate can be gleaned from the literature. The Keynesians unequivocally advocate fiscal deficit spending by government believing that it has positive effect on economic growth, while the neoclassical argue that fiscal deficit is detrimental to economic growth. The Ricardian however, view the impact of deficits financing as being neutral to economic growth in the long run.

The conventional wisdom that deficit is bad for growth is based on the neoclassical theory of output and employment, which has two variants. The extreme version assumes the economy to be continuously at the level of output corresponding to full employment. An increase in government spending financed by borrowing leads to a rise in interest rates; higher interest rates lower private investment, thereby lowering output growth. The moderate version of the neoclassical theory (Blinder and Solow 1973) allows that unemployment may exist in the short run so that fiscal policy, specifically budget deficits, may have a positive impact on output. An increase in government expenditure, or a decrease in the tax rate, stimulates spending, output, and employment. However, once full employment has been achieved, the impact of continued government deficit spending becomes inflationary.

From a policy perspective, both variants of neoclassical theory imply that higher investment, output, and employment and lower interest rates and prices over the long run can be obtained only by lowering the budget deficit. The carefully orchestrated fiscal austerity as the principal means to increase long-run economic growth, by the authorities of diverse political persuasions, is rooted in this fundamental theoretical perspective. Yet, empirical reality has not substantiated the neoclassical perspective. Numerous studies including (Taylor 1985) have shown that the effect of budget deficits on growth is ambiguous: deficits can lower or raise output growth.

What is not in dispute however, is the fact that the quality and direction of expenditure that the government applies the deficit substantially determine the outcome of fiscal deficit on economic growth. Government spending can be divided into two categories: consumption spending (expenditure on goods and services) and public investment spending (expenditures on infrastructure, education, public health, research and development, and other expenditure that are conducive to raising business productivity). A number of empirical studies including Onwioduokit (2005) have found that a rise in public investment significantly reduces business costs and improves business profitability, thereby raising the long-run growth rate of the economy. Thus as a rule, where deficits are applied in a growth enhancing sectors including investment in infrastructure, the outcome has been found to be positive, while where deficits are deployed in supporting consumption, the impact on growth has been found to be negative. The other sticking point in the debate is the need to carry out case by case study on the deficit- growth nexus.

Taylor (1985) presented a classical growth cycles (CGC) model to demonstrate that the impact of budget deficits is far more complex than is generally predicted. The CGC model starts with the assumption that growth in output and employment is a persistent feature of the economy, in the short run and the long run. It assumes that investment decisions, rooted in profitability considerations and carried out in an uncertain world, are responsible for growth. This view contrasts with the standard view that growth is a long-run phenomenon resulting from exogenous changes in population and technology. Further, in a fundamentally uncertain world, there is no inherent reason why planned investment spending should match available savings and the mismatch is reflected in the demand for bank credit. Hence, the money supply is not under the total control of the central bank. If banks' profit expectations are the same as those of firms, banks will automatically extend to firms the credit they need, and the money supply will expand endogenously. The model also assumes that unemployment and excess capacity are recurrent features of the economy over the course of business cycles; however, structural unemployment (reflected in the relatively low employment rates of certain strata of the population) persists over the long run when productive capacity is utilized at the normal level. Finally, the model embedded a social accounting matrix with fully articulated stocks and flows.

Barro (1989) contended that the Ricardian results depended on “full employment”, which definitely does not hold in Keynesian models. In a model Keynesian investigation, if every person thinks that a fiscal deficit makes them richer, the resulting increase of aggregate demand increases output and employment and in so doing essentially makes people better off. This outcome is valid if the economy commences in a state of “involuntary unemployment”. There could even be several rational expectations equilibria, where the adjustment in actual wealth equals the change in perceived wealth. This outcome does not necessarily signify that fiscal deficits boost aggregate demand and wealth in Keynesian models. He further opined that if fiscal deficits made people feel poorer, the resulting contractions in output and employment would have made them poorer. Similarly, if we had started with the Ricardian notion that fiscal deficits did not affect wealth, the Keynesian results would have verified that speculation. The peculiar feature of the standard Keynesian model is that anything that makes people feel richer actually makes them better off, notwithstanding that perception and reality might not correspond one on one. This remark raises uncertainties about the formulation of Keynesian models, but says little about the effects of fiscal deficits.

Ball, et al. (1995) in their contribution maintained that in the long run an economy’s output is determined by its productive capacity, which is 

fundamentally determined by its stock of capital. When deficits shrink investment the capital stock grows more slowly than it otherwise would. Over a year, or two, this crowding out of investment has a negligible effect on the capital stock. But if deficits persist for a decade or more, they can significantly decrease the economy’s capacity to produce goods and services. Furthermore, fiscal deficits by reducing national saving must reduce either investment or net exports. As a result, they must lead to some combination of a lesser capital stock and greater foreign ownership of domestic assets. If fiscal deficits crowd out capital, national income falls because a smaller fraction is produced; if fiscal deficits lead to trade deficits, just as much is produced, but less of the income from production accrues to domestic residents.

Taking the matter a step further, Devereux and Love (1995) investigated the impact of government deficit spending in a two-sector endogenous growth model developed by King and Rebelo (1990), they extended the model to accommodate an endogenous consumption leisure decision. The authors concluded that there is a positive relationship between lump sum financed government deficit spending and growth rates. They explained that, as in many “endogenous growth” models, the rate of growth are positively related to the rate of return on human and physical capital accumulation. The return on human capital accumulation is higher the greater the fraction of time spent working, in either sector. A higher rate of government deficit spending generates negative wealth effects, leading to a reduction in leisure and a rise in hours worked. Consequently, the rate of growth rises. Although government spending raises the long-run growth rate; it reduces welfare since government deficit spending is a less than perfect substitute for private spending.

Similarly, Yavas (1998) showed that an increase in size of fiscal deficit will increase the steady-state level of output if the economy is at low steady-state (i.e. underdeveloped), and will decrease the steady-state level of output if the economy is at a high steady-state (i.e., developed). He argued that in the underdeveloped countries a significant portion of the deficits is directed to the building of the infrastructure of the economy and this type of expenditure will have a stimulating effect on private sector production. In contrast, the developed countries already have most of their infrastructure built and a major part of their deficit spending is on welfare programmes and various social services. Accordingly, the positive effect of spending on these programmes on private output will not be as great as that of expenditures on infrastructure.

Ahmed and Miller (2000) examined the effects of disaggregated government expenditure on investment using fixed- and random-effect methods. Using the government budget constraint, they investigated the effects of tax- and debt-financed expenditure for the full sample, and for sub-samples of developed and developing countries. The authors reported that, tax-financed government expenditure crowds out more investment than debt financed expenditure. Expenditure on social security and welfare reduces investment in all samples while expenditure on transport and communication induces private investment in developing countries.

Heitger (2001) viewed increases in size of government deficit arising from increased consumption as constraints on growth, while increases in size that arise from government investment should be positive in their effect on growth. His central hypothesis is that government expenditures on core public goods including the rule of law, internal and external security have a positive impact on economic growth, but this positive impact of government tends to decline or even reverse if government further increases expenditures in a way that it also provides private goods. The author stressed that two important reasons for a negative impact of excessive government spending on economic growth are the fact that the necessary taxes reduce the incentives to work, to invest and to innovate, and the fact that 

government crowds out more efficient private suppliers.

Empirical findings on the relationship between fiscal deficits and economic growth have been uneven. Guess and Koford (1984) used the Granger causality test to find the causal relationship between fiscal deficits and inflation, gross national product, and private investment using annual data for seventeen OECD countries for the period 1949 to 1981. They concluded that fiscal deficits do not cause changes in these variables. Kormendi and Meguire (1985) conducted a cross-sectional study across forty-seven countries investigating the effects of monetary variance, risk, government spending, inflation and trade openness on growth. Specifically, with respect to government deficit spending, they found that the mean growth rate of the ratio of government deficit spending to output has a positive effect on GDP growth

Grier and Tullock (1989) repeated the work of Kormendi and Meguire (1985) on a larger sample of one hundred and thirteen (133) countries from which they constructed a pooled cross-section/time series data set. They tested for regularities in the data rather than robustness. They found that both the inflation rate and government deficit spending as a proportion of GDP were negatively related to growth. On the larger data set they found, contrary to Kormendi and Meguire, that the mean growth rate of the ratio of government deficit spending to output had a negative and significant impact on GDP growth.

Barro (1991) examined ninety eight (98) countries during the period 1960—1985 and reported a negative relationship between the output growth rate and the share of government consumption expenditures. He noted that growth rates are positively related to measures of political stability and inversely related to a proxy for market distortions. He found measures of political instability inversely related to growth and investment. He further averred that the first source of economic growth, human capital, can be measured in terms of education level and health. He concluded that the growth rate of real per capita GDP is positively related to initial human capital (proxied by 1960 school-enrolment rates).  He explained that theories in which the initial values of human capital and per capita GDP matter for subsequent growth rates also suggest relations with physical investment and fertility. The author also suggested that countries with higher human capital also have lower fertility rates and higher ratios of investment to GDP. He noted that in endogenous growth models of Rebelo (1990) and Barro (1990), per capita growth and the investment ratio tend to move together. He stated that growth is inversely related to the share of government consumption in GDP, but insignificantly related to the share of public investment. Finally he submitted that when the share of public investment was considered; he found a positive but statistically insignificant relationship between public investment and the growth rate.

Easterly et al (1992) reported a consistent negative relationship between growth and fiscal deficits. Fischer (1993) supported Easterly et al. (1992) findings when they noted that large fiscal deficits and growth are negatively related. Among other variables such as inflation and distorted foreign exchange markets, he emphasized the importance of a stable and sustainable fiscal policy, to achieve a stable macroeconomic framework.

Easterly and Schmidt-Hebbel (1994) in their contribution to the debate attempted a comprehensive enquiry into the direct and indirect effects of deficits on macroeconomic variables for selected developing countries. An extensive discussion was undertaken on the measurement issues of fiscal deficits. The authors recognised a number of measurements of fiscal deficits which further confirmed the findings of researches on the subject. Series of techniques including correlation, percentages, frequency tables, regression analysis were explored. The graphics used gave deep insight into the trend and composition of deficits.

The authors principally argued that for efficient public investment, particularly in social or physical infrastructure and increased revenue generation through taxes, as this would encourage economic growth. The analysis also demonstrated that fiscal adjustments were important for improved economic performance. They concluded that the relationship between fiscal deficits and macroeconomic variables is complex and differs from country to country. In addition, the means of financing deficits contributed significantly to the impact of the deficits on the domestic economy. 

Al-Khedair (1996) studied the relationship between the budget deficit and economic growth in the seven major industrial countries (G-7). The data utilized covered the period 1964 to 1993. The variable included in model were, budget deficit, the money supply, nominal exchange rate, and foreign direct investment. He found that the budget deficit has a significant positive impact on economic growth in France, Germany, and Italy. Overall results concluded that the budget deficit seems to positively and significantly affect economic growth in all the seven major industrial countries.

Kelly (1997) investigated the effects of public expenditure on economic growth among seventy three (73) nations (including developing and developed nations) over the period 1970- 89. This study used OLS to estimate economic growth as a function of various public expenditures including social expenditure, educational expenditure and other expenditures, and certain variables, which have been prominent in the empirical growth literature such as private investment, and the trade openness variable. The study found that public investment, and particularly housing expenditure, registered a uniformly positive and frequently significant relationship with growth. Although the results did not support a robust relationship between public investment and growth, it nevertheless conflicted with the crowding out thesis that dominated the theoretical literature. Social security expenditures were positively related to growth in each specification of the model and significantly so in several versions. The results are important because they suggested that nations may pursue social welfare and growth simultaneously. The results indicated that health expenditures were negatively and sometimes significantly related to growth, while those for education vary in sign and significance.

Jenkins (1997) motivated by the persistent deficits in Zimbabwe, examined public sector deficits and macroeconomic stability in Zimbabwe. The author identified an intense debt problem, drought and terms of trade shocks coupled with the government’s unwillingness to engage in fiscal adjustment as fundamental macroeconomic setbacks in Zimbabwe. Findings of the study showed that uncertainty caused by the growing public-sector debt reduced private investment and further resulted in a decline in growth. The macroeconomic model explored by the researcher showed that the variable with greatest influence on overall growth was agricultural output. However, the budget deficit had an unambiguously negative impact on exports. It also reduced private welfare, worsened income distribution and reduced employment. The author concluded that the growth of government resulted in a drain on the economy, rather than facilitate economic growth and development.   

Phillips (1997) critically analyzed the Nigerian fiscal policy between 1960 and 1997 with a view to identifying workable ways for the effective implementation of Vision 2010. He observed that fiscal deficits have been an abiding feature in Nigeria for decades. He noted that with the exception of the period 1971 to 1974, and 1979, there has been an overall deficit in the federal Government budgets each year since 1960. The chronic fiscal deficits and their financing largely by borrowing, he asserted, resulted in excessive money supply, worsened inflationary pressures, and complicated macroeconomic instability, resulting in negative impact on external balance, investment, employment and growth.  He 

contended however that fiscal policy could be an effective tool for moving Nigeria towards the desired state in 2010 only if it is substantially cured of the chronic budget deficit syndrome it has suffered for decades.

Anyanwu (1998) deviated markedly from past studies that focused more on the effects of deficits and concentrated on the impact of deficits financing. He applied regression analysis to pooled cross-section and time series data for Nigeria, Ghana and the Gambia. The results did not reveal a significant positive association between overall fiscal deficits (and its foreign financing) and domestic nominal deposit interest rates. However, the author reported a significant positive relationship between domestic financing of the fiscal deficits and domestic nominal deposit rates. He concluded that the concern of economists in the Sub-region should shift from the deficits itself to the manner of financing the deficit.

Mugume and Obwona (1998), concerned about the role of fiscal deficits in the reform programme in Uganda, investigated public sector deficits and macroeconomic performance in Uganda. The study set out to provide a more systematic modelling framework to explain the interrelationships between fiscal deficits, current account deficits and real exchange rate depreciation. Another focus of the research was to analyse the behaviour of important aggregate variables such as price level, current account balance, external sector and money stock as influenced directly and indirectly by changes in fiscal deficits. A small macroeconomic model that captured the interactions between exports, import, real exchange rate, government expenditure, price, and money supply was specified. The empirical strategy attempted to build an integrated model linking the public sector with the financial market and then generate implications for the conduct of fiscal policy. A distinct finding of the estimations was the observed interaction of the public sector and monetary sector.

Adenikinju and Olofin (2000) focused on the role of economic policy in the growth performance of the manufacturing sectors in African countries. They utilized panel data for seventeen African countries over the period 1976 to 1993. Their econometric evidence indicated that government policies aimed at encouraging foreign direct investment, enhancing the external competitiveness of the economy, and maintaining macroeconomic balance have significant effects on manufacturing growth performance in Africa.

Prunera (2000) showed a possible mechanism through which deficit may hinder human capital accumulation and therefore economic growth. Taking deficit as an indicator for the presence of disequilibrium and inefficiencies in a country, the author highlighted deficit as a factor that could be reducing the effectiveness of time devoted to education and training. Following a simple growth model and allowing for slight changes in the law of human capital accumulation, the author noted that deficit might sharply reduce human capital accumulation. On the other hand, a deficit reduction carried on for a long time, taking that reduction as a more efficient management of the economy, may prove useful in inducing endogenous growth. He submitted that empirical evidence for a sample of countries seems to support the theoretical assumptions of an inverse relationship between deficit and human capital accumulation as well as the presence of a strongly negative association between the quantity of deficit in the economy and the rate of growth. However, the author averred that there was a certain role for budget deficit in economic growth.

Ahmed and Miller (2000) examined the effects of disaggregated government expenditure on investment using OLS, fixed-effect, and random effect methods. Their empirical results produced several conclusions. First, the openness variable has a significantly positive effect on investment only for developing countries. For developed countries, openness does not significantly affect investment. Second, expenditure on transportation 

and communication, crowds in investment for developing countries only. Third, tax financed government expenditure, in general, crowds out investment more frequently that debt-financed government expenditure. That finding may suggest the existence of liquidity constraints within the economy. Finally, expenditure on social security and welfare crowds out investment for both tax and debt-financed increases and in both developing and developed countries. This is the only category of government expenditure that had such a consistent (negative) effect across all specifications.

In recent times as the debate on fiscal deficits and growth progressed, more elegant models and empirical strategies have been explored in the analysis of the subject. Prominent among these include, Adams and Bevan (2002), Korsu (2009) and Keho (2010). Their findings are divergent.

Adams and Bevan (2002) assessed the relationship between fiscal deficits and growth in a panel of forty five (45) developing countries. An overlapping generation’s model in the tradition of Diamond (1965) that incorporated high-powered money in addition to debt and taxes was specified. The estimation strategy involved a standard fixed effect panel data estimation and bi-variate linear regression of growth on the fiscal deficits using pooled data. An important contribution of the empirical analysis was the existence of a statistically significant non-linearity in the impact of budget deficit on growth. However, this non-linearity the authors argued reflected the underlying composition of deficit financing. In effect, Adams and Bevan posited that for a given level of government spending, a shift from a balanced budget to a (small) deficit may temporarily reduce distortions especially if the distortions impact growth rather than output. Based on a consistent treatment of the government budget, the authors found evidence of a threshold effect at a level of the deficit around 1.5 percent of GDP. While there appeared to be a growth payoff to reducing deficits to level, this effect disappeared or reversed itself for further fiscal contraction. The magnitude of this payoff, but not its general character, necessarily depended on how changes in the deficit were financed (through changes in borrowing or seigniorage) and on how the change in the deficit was accommodated elsewhere in the budget. The authors also found evidence of the interactive effects between deficits and debt stock, with high debt stocks exacerbating the adverse consequences of high deficits.

Korsu (2009)’s finding supported the arguments of Jenkins (1997) and  Mugume and Obwona (1998) who worked on Zimbabwe and Uganda, respectively. They argued that fiscal deficits were inimical to macroeconomic performance as a whole and advocated for fiscal restraint as a pathway to improving other sectors of the economy and welfare. Korsu (2009)’s work recognised economic growth, low and stable prices and healthy external balance as the macroeconomic policy objectives of the economy of Sierra Leone. These he argued have been hampered by the persistence of fiscal deficits following some background analysis and historical records. To provide empirical support to the background information, aggregate annual data for the period 1971 to 2005 were used in an econometric estimation. Predicated on an open economy model, equations for money supply, price level, real exchange rate and the overall balance of payments were specified. The empirical models were estimated using a 3-stage least square estimation technique. The estimated results showed that fiscal restraint improved the external sector of Sierra Leone by reducing money supply and the price level. The important contribution of Korsu’s paper rested on the simulation experiments which differed from previous studies reviewed. The results pointed to the need for fiscal restraint and improved revenue generation to meet the expenditure requirements of the government.

In his contribution to the debate, Keho (2010) investigated the causal relationship between budget deficit and economic growth in seven 

member countries of the West African Economic and Monetary Union (WAEMU). One specific objective was pursued which was to examine if fiscal deficits were really bad for economic growth in all countries of the WAEMU. The study employed the granger causality test developed by Toda and Yamatoto (1995). Annual time series data on real GDP growth, ratio of gross fixed capital formation and public deficit or surplus as a percentage of GDP were used. Unlike most empirical works on granger causality tests, the empirical analysis was undertaken in a multivariate form using gross fixed capital formation as a control variable. This mediating variable related meaningfully to economic growth in traditional growth models and mitigated the possibility of distorting the causality inferences due to omission of relevant variables. A striking feature of the descriptive statistics of the variables was that low levels of economic growth were associated with persistent fiscal deficits. In addition, the correlation coefficients showed that deficit and economic growth were positively related. The empirical results were mixed across countries. In three cases the author found no causality evidence between fiscal deficits and growth. Findings also indicated a two-way causality in three countries, deficits having adverse effects on growth. Overall the author argued that the results gave support to the WAEMU budgetary rule aimed at restricting the size of fiscal deficits as a prerequisite for sustainable growth and real convergence.

It can be concluded from the theoretical and empirical studies presented in this section that there are some similarities and differences between these studies dealing with the impact of public investment on private investment and economic growth. The key objective of this paper is to empirically ascertain whether fiscal deficit enhance or retard economic growth in the Gambia between the period 1980 and 2009. The outcome of this study is expected to contribute to the unfolding literature on the subject while serving as a guide for policy makers in the Gambia.

Stylised Facts on Fiscal Deficits, Inflation and Output in the Gambia
Domestic revenue/GDP ratio averaged 17.9 percent between 2001 and 2003. The ratio improved in the next four consecutive years (2004-2007) above 20.0 percent. The increase in revenue could principally be attributed to the commitment to fiscal transparency and accountability, and the response to the policy measures. However, between 2008 and 2010, the ratio fell marginally to an average of 18.3 percent, on account of a drop in tax revenue. While non tax revenue as a percentage of GDP increased from 1.8 percent in 2008 to 1.9 percent in 2010 this was inadequate to counterbalance the slight decline in tax revenue. Grants as a percent of GDP in 2009 registered a strong growth of 5.1 percent from a paltry 0.9 percent in 2008.  This surge in grants (26 percent of total revenue) was principally due to increases in project disbursement and programme grants.  Thus, total revenues (including grants) improved from 20.6 percent in 2008 to 24.6 percent in 2010.

With regards to the expenditure, total expenditure and net lending averaged 25.0 percent between 2000 and 2002.The average ratio increased to 26.1 between 2003 and 2006. In 2007 and 2008, respective ratios of 22.8 and 23.0 were registered. However considerable improvement to 27.8 percent was achieved in 2010. The quicker pace of growth stemmed mainly from increased capital spending. Within this total, there had been a shift from recurrent to capital expenditure, with the latter growing by 33.9 percent in 2010 from 24.2 percent in 2008.  As can be gleaned from Figure 1, the relationship between the three variables fiscal deficit, real GDP growth and inflation exhibited a mixed trend.

Given the more rapid growth rate of spending relative to revenue, the overall budget balance (excluding grants) worsened from a deficit of 3.3 percent of GDP in 2008 to 8.6 and 8.5 percent in 2009 and 2010, respectively. The deficit was financed from both external and domestic sources. Domestic debt as a ratio of GDP increased significantly by 26.1 percent in 2008 to 34.6 percent in 2010 as a result of Treasury Bills issued.  The share of treasury bills to domestic debt widened from 79.7 percent in 2008 to 84.4 percent in 2010.

References:

1. Schena M, Shalon D, Davis RW, Brown PO. Quantitative monitoring of gene expression patterns with a complementary DNA microarray. Science 1995; 270: 467- 470.

2. Schena M. Microarrays: Biotechnology’s Discovery Platform for Functional Genomics. TIBTech 1998; 16(7): 301 - 6.

3. Wildsmith SE, Elcock FJ. Microarrays under the microscope. Molecular Pathology 2001; 54(1): 8 - 16.

4. Brown PO, Botstein D. Exploring the new world of the genome with DNA microarrays. Nature Genetics 1999; 21 Suppl 1: 33 - 37.

5. Mattick J, The Human Genome as an RNA Machine. Febit Science LoungeWebinar, June 12, 2008.

6. Southern EM. Detection of specific sequences among DNA fragments separated by gel electrophoresis. Journal of Molecular Biology 1975; 98: 503 - 517.

7. Southern EM, Mitchell AR. Chromatography of nucleic acid digests on thin layers of cellulose impregnated with polyethyleneamine. Biochemical Journal 1971; 123: 613 - 617.

8. Bains W, Smith GC. A novel method for nucleic acid sequence determination. Journal of Theoretical Biology 1988; 135: 303 - 307.

9. Khrapko KR, Lysov Y, Khorlyn AA, Shick VV, Florentiev VL and Mirzabekov AD. FEBS Lett. 1989; 256: 118 - 122.

10. Fodor SP, Read JL, Pirrung MC, Stryer L, Lu AT and Solas D. Light – directed, spatially addressable parallel chemical synthesis. Science 1991; 251: 767 - 773.

11. Lashkari DA, DeRisi JL, McCusker JH, Namath AF, Gentile C, Hwang SY, Brown PO and Davis RW. Yeast microarrays for genome wide parallel genetic and gene expression analysis. PNAS USA 1997; 94 (24): 13057 - 13062.

12. Battista JR, Howell, HA, Park, MJ, Earl, AM and Peterson SN. The Deinococcus radiodurans Microarray: Changes in Gene Expression Following Exposure to Ionizing Radiation 2002 Microbial Cell Project 125, DOE Genome Contractor-Grantee Workshop IX.

13. Marmur J and Doty P. Thermal renaturation of deoxyribonucleic acids. Journal of Molecular Biology 1961; 3: 585 - 594.

14. Sundberg SA, Chow A, Nikiforov T, Wada G, Microchip-based systems for biomedical and pharmaceutical analysis. European Journal of Pharmaceutical Sciences 2001; 14(1): 1 - 12.

15. Afshari CA. Perspective: Microarray Technology, Seeing More Than Spots. Endocrinology 2002; 143(6): 1983 - 1989.

16. Ponder BA, Cancer genetics. Nature 2001; 411: 336 - 341.

17. Rowley JD. A new consistent chromosomal abnormality in chronic myelogenous leukemia identified by quina - crine fluorescence and Giemsa staining, Nature 1973; 243: 290 - 293.

18. Druker BJ, Talpaz M, Resta DJ, Peng B, Buchdunger E, Ford J, et al.., Sawyers C. L Efficacy and safety of a specific inhibitor of the BCR - ABL tyrosine kinase in chronic myeloid leukemia. The New England Journal of Medicine 2001; 344: 1084 - 1086.

19. Gray JW, Collins C. Genome changes and gene expression in human solid tumors. Carcinogenesis 2000; 21: 443 - 452.

20. Venter JC, Adams MD, Myers EW, Li PW, Mural RJ, Sutton GG, et al. The sequence of the human genome. Science, 2001, 291: 1304 - 1351.

21. Young RA. Biomedical discovery with DNA arrays. Cell 2000; 102: 9 - 15.

22. Pandey G, Paul D, Jain K. Branching of onitrobenzoate degradation pathway in Arthrobacter protophormiae RKJ100: identification of new intermediates. FEMS Mi-crobiol Lett 2003; 229:231 - 6.

23. Labana S, Singh OV, Basu A, Pandey G, Jain RK. A microcosm study on bioremediation of p - nitrophenol-contaminated soil using Arthrobacter protophormiae RKJ100. Applied Microbiology and Biotechnology 2005; 68: 417 - 24.

24. Labana S, Pandey G, Paul D, Sharma NK, Basu A, Jain RK. Plot and field studies on bioremediation of p - nitrophenol contaminated soil using Arthrobacter protophormiae RKJ100. Environmental Science and Technology 2005; 39: 3330 - 7.

25. Esteve - Nunez A, Caballero A, Ramos JL. Biological degradation of 2, 4, 6 - trinitrotoluene. Microbiology and Molecular Biology Reviews 2001; 65: 335 - 52.

26. Schut GJ, Zhou J, Adams MW. DNA microarray analysis of the hyperthermophilic archaeon Pyrococcus furi-osus: evidence for a new type of sulfur-reducing enzyme complex. Journal of Bacteriology 2001; 183: 7027 - 36.

27. Krivobok S, Kuony S, Meyer C, Louwagie M, Wilson JC, Jouanneau Y. Identification of pyrene - induced proteins in Mycobacterium spp. strain 6PY1: evidence for two ringhydroxylating dioxygenas - es. Journal of Bacteriology 2003 185: 3828 - 41.

28. Richmond CS, Glasner JD, Mau R, Jin H, Blattner FR. Genome - wide expression profiling in Escherichia coli K - 12. Nucleic Acids Research 1999; 27, 3821 - 3835.

29. Tao H, Bausch C, Richmond C, Blattner FR, Conway T. Functional genomics: expression analysis of Escherichia coli growing on minimal and rich media. Journal of Bacteriology 1999 181: 6425 - 6440.

30. Wilson M, DeRisi J, Kristensen, HH, Imboden P, Rane S, Brown PO, Schoolnik GK. Exploring dru - induced alterations in gene expression in Mycobacterium tuberculosis by microarray hybridization. PNAS USA 1999; 96: 12833 - 12838.

31. Behr MA, Wilson MA, Gill WP, Salamon H, Schoolnik GK, Rane S, et al. Comparative genomics of BCG vaccines by whole - genome DNA microarray. Science 1999; 284: 1520 -  1523.

32. de Saizieu A, Gardes C, Flint N, Wagner C, Kamber M, Mitchell TJ, et al. Microarraybased identification of a novel Streptococcus pneumoniae regulon controlled by an autoinduced peptide. Journal of Bacteriology 2000; 182: 4696 - 4703.

33. Hakenbeck R, Balmelle N, Weber B, Gardes C, Keck W, de Saizieu A. Mosaic genes and mosaic chromosomes: intra - and interspecies genomic variation of Streptococcus pneumoniae. Infection and Immunity 2001; 69: 2477 - 2486.

34. Fawcett P, Eichenberger P, Losick R., Youngman. The transcriptional profile of early to middle sporulation in Bacillus subtilis. PNAS USA 2000; 97: 8063 - 8068.

35. Ye RW, Tao W, Bedzyk L, Young T, Chen M, Li L.Global gene expression profiles of Bacillus subtilis grown under anaerobic conditions. Journal of Bacteriology 2000; 182: 4458 - 4465.

36. Yoshida K, Kobayashi K, Miwa Y, Kang CM, Matsunaga M, Yamaguchi H, et al. Combined transcriptome and proteome analysis as a powerful approach to study genes under glucose repression in Bacillus subtilis. Nucleic Acids Research 2001; 29: 683 - 692.

37. DeRisi JL, Iyer V, Brown PO. Exploring the metabolic and genetic control of gene expression on a genomic scale. Science 1997; 278: 680 - 686.

38. Lovley DR. Cleaning up with genomic: applying molecular biology to bioremediation. Nature Reviews Microbiology 2003; 1: 35 - 44.

39. Causton HC, Ren B, Koh SS, Harbison CT, Kanin E, Jennings EG, et al. Remodeling of yeast genome expression in response to environmental changes. Molecular Biology of the Cell 2001; 12: 323 - 337.

40. Gasch AP, Spellman PT, Kao CM, CarmelHarel O, Eisen MB, Storz G, et al. Genomic expression programs in the response of yeast cells to environmental changes. Molecular Biology of Cell 2000; 1: 4241 - 4257.

41. Momose Y, Iwahashi H. Bioassay of cadmium using a DNA microarray: genome-wide expression patterns of Saccharomyces cerevisiae response to cadmium. Environmental Toxicology and Chemistry 2001; 20: 2353 - 2360.

42. Rise ML, Jones SR, Brown GD, Von Schalburg KR, Davidson WS, Koop BF. Microarray analyses identify molecular biomarkers of Atlantic salmon macrophage and hematopoietic kidney response to Piscirickettsia salmonis infection. Physiological Genomics 2004; 20: 21 - 35.

43. Greenberg, SA. DNA microarray gene expression analysis technology and its application to neurological disorders. Neurology 2001; 57(5): 755 - 761.

44. Abiko Y, Hiratsuka K, Kiyama - Kishikawa M, Tsushima K, Ohta M, Sasahara H. Profiling of Differentially Expressed Genes in Human Gingival Epithelial Cells and Fibroblasts by DNA Microarray. Journal of Oral Science 2004; 46(1): 19 - 24.

45. Acin S, Navarro MA, Perona JS, Surra JC, Guillen N, Arnal C et al. Microarray Analysis of Hepatic Genes Differentially Expressed in the Presence of the Unsaponifiable

46. Fraction of Olive Oil in Apolipoprotein EDeficient Mice. British Journal of Nutrition, 2007; 97(4): 628 - 638.

47. Caetano AR, Johnson RK, Ford JJ and Pomp D. Microarray Profiling for Differential Gene Expression in Ovaries and Ovarian Follicles of Pigs Selected for Increased Ovulation Rate. Genetics 2004; 168(3): 1529 - 1537.

48. De K, Ghosh G, Datta M, Konar A, Bandyopadhyay J, Bandyopadhyay D, et al. Analysis of Differentially Expressed Genes in Hyperthyroid - Induced Hypertrophied

49. Heart by CDNA Microarray. Journal of Endocrinology 2004; 182(2): 303 - 314.

50. Shalon D, Smith SJ, Brown PO. A DNA microarray system for analyzing complex DNA samples using two - color fluorescent probe hybridization. Genome Research 1996; 6: 639 - 645.

51. Schena M, Shalon D, Heller R, Chai A, Brown PO. Parallel human genome analysis: microarray - based expression of 1000 genes. PNAS USA 1996; 93: 10539 - 11286.

52. Xu J, Stolk JA, Zhang X, Silva SJ, Houghton RL, Matsumura M, et al. Identification of differentially expressed genes in human prostate cancer using subtraction and microarray. Cancer Research 2000; 60: 1677 - 1682.

53. Luo J, Zha S, Gage WR, Dunn TA, Hicks JL, Bennett CJ, et al. - Methylacyl - CoA racemase: a new molecular marker for prostate cancer. Cancer Research 2002; 62: 2220 - 2226.

54. Rubin MA, Zhou M, Dhanasekaran SM, Varambally S, Barrette TR, Sanda MG, et al.  - Methylacyl coenzyme A racemase as a tissue biomarker for prostate cancer. JAMA. 2002; 287: 1662 - 1670.