Does Economic Performance Correlate with Big Government?
AbstractDevelopment is a systematic and evolutionary process, which is not limited to the improvement of economic performance per se. Institutions that support economic freedom and governments that may or may not support development and freedom probably evolve together. A recent study by La Porta et al (1999) examines these relationships and finds, among other things, that there is a positive link between big government and economic development. We reexamine these links with international cross-sectional data for five periods and find that economic freedom and development do reinforce each other but that the size and scope of government does not play a strong role.
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Bibliographic InfoArticle provided by Econ Journal Watch in its journal Econ Journal Watch.
Volume (Year): 1 (2004)
Issue (Month): 2 (August)
Economic development; property rights; political and institutional change;
Find related papers by JEL classification:
- P14 - Economic Systems - - Capitalist Systems - - - Property Rights
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
- P17 - Economic Systems - - Capitalist Systems - - - Performance and Prospects
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