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An Empirical Analysis of the Relation Between Social Spending and Economic Growth in Developing Countries and OECD Members

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  • Tobin Im
  • Wonhyuk Cho
  • Gregory Porumbescu

Abstract

This study examines the economic effects of social spending in less developed nations and compares the situation with that of social spending in developed countries. Currently, research in this feld is limited to developed countries, but there is a need to question the appropriateness of the conclusions of existing studies for developing countries. An analysis of data from developed and developing countries suggests that social spending correlates positively with economic growth in developing countries and negatively with economic growth for developed countries. These results imply that social spending regimes can be instrumental in achieving economic growth in poorer countries.

Suggested Citation

  • Tobin Im & Wonhyuk Cho & Gregory Porumbescu, 2011. "An Empirical Analysis of the Relation Between Social Spending and Economic Growth in Developing Countries and OECD Members," Asia Pacific Journal of Public Administration, Taylor & Francis Journals, vol. 33(1), pages 37-55, June.
    • Handle: RePEc:taf:rapaxx:v:33:y:2011:i:1:p:37-55
    DOI: 10.1080/23276665.2011.10779377
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    References listed on IDEAS

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    1. Frees,Edward W., 2004. "Longitudinal and Panel Data," Cambridge Books, Cambridge University Press, number 9780521828284.
    2. Shantayanan Devarajan & Vinaya Swaroop & Heng-fu Zou, 1993. "What do governments buy?," CEMA Working Papers 513, China Economics and Management Academy, Central University of Finance and Economics.
    3. Peter Lindert, 2004. "Social Spending and Economic Growth," Challenge, Taylor & Francis Journals, vol. 47(4), pages 6-16.
    4. Tanzi,Vito & Schuknecht,Ludger, 2000. "Public Spending in the 20th Century," Cambridge Books, Cambridge University Press, number 9780521662918.
    5. Frees,Edward W., 2004. "Longitudinal and Panel Data," Cambridge Books, Cambridge University Press, number 9780521535380.
    6. Rebecca M. Blank, 1994. "Social Protection versus Economic Flexibility: Is There a Trade-Off?," NBER Books, National Bureau of Economic Research, Inc, number blan94-1, March.
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    Cited by:

    1. Marta Simões & Adelaide Duarte & João Sousa Andrade, 2014. "Assessing the Impact of the Welfare State on Economic Growth: A Survey of Recent Developments," GEMF Working Papers 2014-20, GEMF, Faculty of Economics, University of Coimbra.
    2. Marta Simões & Adelaide Duarte & João Sousa Andrade, 2014. "Assessing the Impact of the Welfare State on Economic Growth: A Survey of Recent Developments," GEMF Working Papers 2014-20, GEMF, Faculty of Economics, University of Coimbra.
    3. João A. S. ANDRADE & Adelaide P. S. DUARTE & Marta C. N. SIMÕES, 2018. "Education and health: welfare state composition and growth across country groups," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 9, pages 111-144, December.
    4. Pedro Bação & Marta Simões, 2020. "Is the Welfare State Relevant for Economic Growth? Evidence for Portugal," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 62(3), pages 494-520, September.
    5. Alessandro Crociata & Massimiliano Agovino & Donatella Furia & Giacomo Osmi & Nicola Mattoscio & Massimiliano Cerciello, 2020. "Impulse and time persistence of disaggregate welfare expenditure on growth in the EU," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 13-38, April.
    6. Pedro Bação & Marta Simões, 0. "Is the Welfare State Relevant for Economic Growth? Evidence for Portugal," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 0, pages 1-27.
    7. João Sousa Andrade & Marta Simões & Adelaide Duarte, 2013. "Despesa Pública em Educação e Saúde e Crescimento Económico: Um Contributo para o Debate sobre as Funções Sociais do Estado," GEMF Working Papers 2013-18, GEMF, Faculty of Economics, University of Coimbra.

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