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Growth and government: Is there a difference between developed and developing countries?

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  • Tove Strauss

Abstract

I examine the role of government in the growth of 64 industrialized and developing countries, considering both expenditure and financing aspects of government. Recognizing that there may be differences between the two country groups, I estimate both standard OLS and dummy variable regressions. The general conclusion is that although most fiscal variables are not significantly related to economic growth, the means of financing matters more than government spending. I find that seigniorage and the budget surplus are important for growth, but the LDCs is the group that drive the results in all regressions. Copyright Springer-Verlag Berlin Heidelberg 2001

Suggested Citation

  • Tove Strauss, 2001. "Growth and government: Is there a difference between developed and developing countries?," Economics of Governance, Springer, vol. 2(2), pages 135-157, July.
    • Handle: RePEc:spr:ecogov:v:2:y:2001:i:2:p:135-157
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    Cited by:

    1. Francisco J. Delgado, . "Public Expenditure and Economic Growth: Empirical Evidence for the EU," Politická ekonomie, Prague University of Economics and Business, vol. 0.
    2. Colombier, Carsten, 2004. "Government and growth," MPRA Paper 104938, University Library of Munich, Germany.
    3. Islam, Rafikul, 2010. "Critical success factors of the nine challenges in Malaysia's vision 2020," Socio-Economic Planning Sciences, Elsevier, vol. 44(4), pages 199-211, December.
    4. Francisco J. Delgado, 2023. "Public Expenditure and Economic Growth: Empirical Evidence for the EU," Politická ekonomie, Prague University of Economics and Business, vol. 2023(6), pages 709-729.

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