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Public expenditures and growth

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  • Trish Kelly

Abstract

The article explores the effects of public expenditures on growth among 73 countries over the 1970-89 period. While much of the literature attributes weak growth to public investment and social expenditures which inhibit growth through crowding-out and rent-seeking, the article highlights the contributions that public investment and social expenditures may make to growth. The article's econometric analysis suggests that crowding-out and rent-seeking concerns may have been overstated in the literature.

Suggested Citation

  • Trish Kelly, 1997. "Public expenditures and growth," Journal of Development Studies, Taylor & Francis Journals, vol. 34(1), pages 60-84.
    • Handle: RePEc:taf:jdevst:v:34:y:1997:i:1:p:60-84
    DOI: 10.1080/00220389708422503
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    References listed on IDEAS

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    1. Alicia H. Munnell, 1991. "Is there a shortfall in public capital investment? An overview," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 23-35.
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    Cited by:

    1. Fedderke, J.W. & Perkins, P. & Luiz, J.M., 2006. "Infrastructural investment in long-run economic growth: South Africa 1875-2001," World Development, Elsevier, vol. 34(6), pages 1037-1059, June.
    2. KARGI, Bilal, 2013. "Bütçe Büyüklükleri/Performansı ve Büyüme Verileri: Türkiye Üzerine (2000:01-2012.03) Zaman Serileri Analizi [Budget Size / Performance and Growth Data: Time Series Analysis (2000:01-2012:03) on Tur," MPRA Paper 55705, University Library of Munich, Germany.
    3. Awaworyi Churchill Sefa & Ugur Mehmet & Yew Siew Ling, 2017. "Government education expenditures and economic growth: a meta-analysis," The B.E. Journal of Macroeconomics, De Gruyter, vol. 17(2), pages 1-17, June.
    4. Abida Naurin & Panayiotis M. Pourpourides, 2023. "On the causality between household and government spending on education: evidence from a panel of 40 countries," Empirical Economics, Springer, vol. 65(2), pages 567-585, August.
    5. Alessandra Cepparulo & Gilles Mourre, 2020. "How and How Much? The Growth-Friendliness of Public Spending through the Lens," European Economy - Discussion Papers 132, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    6. Deniz GÜVEN & Türker ŞİMŞEK & Ahmet GÜVEN, 2018. "Sağlık Yönetimi Kapsamında Sağlık Harcamalarının Ekonomik Büyüme Üzerine Etkisi: MENA Ülkeleri Üzerine Bir Panel Regresyon Analizi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(37).
    7. Awaworyi Churchill, Sefa & Yew, Siew Ling & Ugur, Mehmet, 2015. "Effects of Government Education and Health Expenditures on Economic Growth: A Meta-analysis," EconStor Preprints 110901, ZBW - Leibniz Information Centre for Economics.
    8. Friday Ebong & Fidelis Ogwumike & Udeme Udongwo & Olumide Ayodele, 2016. "Impact of Government Expenditure on Economic Growth in Nigeria: A Disaggregated Analysis," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(1), pages 113-121.
    9. Sefa Awaworyi Churchill & Mehmet Ugur & Siew Ling Yew, 2017. "Does Government Size Affect Per-Capita Income Growth? A Hierarchical Meta-Regression Analysis," The Economic Record, The Economic Society of Australia, vol. 93(300), pages 142-171, March.
    10. Phan Thi Hang Nga & Pham Minh Tien, 2024. "The impact of public expenditure on economic growth in Vietnamese localities: Research in the context of the impact of Covid-19," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 14(1), pages 50-64.
    11. Hassan Bougrine & Teppo Rakkolainen, 2009. "Optimal Economic Growth Using Fiscal and Monetary Policies," Discussion Papers 50, Aboa Centre for Economics.
    12. Tea Kasradze, 2020. "Challenges Facing Financial Inclusion Due to the COVID-19 Pandemic," European Journal of Marketing and Economics Articles, Revistia Research and Publishing, vol. 3, July -Dec.
    13. Sefa Awaworyi Churchill & Siew Ling Yew, 2018. "The effect of military expenditure on growth: an empirical synthesis," Empirical Economics, Springer, vol. 55(3), pages 1357-1387, November.
    14. Jean C. Kouam & Simplice A. Asongu, 2022. "The Relevance of an Optimal Policy Mix in the CEMAC zone," Working Papers 22/098, European Xtramile Centre of African Studies (EXCAS).
    15. Prof. Nnamocha, P. N. & Anyanwu, Austin C. (PhD), 2022. "Domestic Investment and Economic Growth in Nigeria, 1980-2020," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 9(8), pages 122-131, August.
    16. Takahiro SATO, 2017. "India in the World Economy: Inferences from Empirics of Economic Growth," ESRI Discussion paper series 338, Economic and Social Research Institute (ESRI).
    17. Awaworyi Churchill, S. & Yew, S.L., 2017. "Are government transfers harmful to economic growth? A meta-analysis," Economic Modelling, Elsevier, vol. 64(C), pages 270-287.
    18. Ibrahim Carole, 2019. "Government Spending and Non-Oil Economic Growth in the UAE," Economics and Business, Sciendo, vol. 33(1), pages 82-93, January.
    19. Feiza El Hancha Sfar & Olfa Ben Ouda, 2016. "Contribution of Cooperative Banks to the Regional Economic Growth: Empirical Evidence from France," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 508-514.
    20. Fan, Shenggen & Rao, Neetha, 2003. "Public spending in developing countries: trends, determination, and impact," EPTD discussion papers 99, International Food Policy Research Institute (IFPRI).
    21. Sefa Awaworyi & Siew Ling Yew, 2014. "Government Transfers and Growth: Is there Evidence of Genuine Effect?," Monash Economics Working Papers 40-14, Monash University, Department of Economics.
    22. Gedir Silva de Souza & Sérgio Kannebley Júnior, 2008. "Política Fiscal E Crescimento De Longo Prazo No Brasil," Working Papers 08_04, Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto.
    23. Nikos Benos, 2005. "Fiscal Policy and Economic Growth: Empirical Evidence from OECD," University of Cyprus Working Papers in Economics 1-2005, University of Cyprus Department of Economics.

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