How Public Spending Can Help You Grow: An Empirical Analysis for Developing Countries
AbstractAlthough many studies indicate that both the level and composition of public spending are significant for economic growth, the results in the empirical literature are still mixed. This note is based on a paper of the same title (Bayraktar and Moreno-Dodson 2010) that compares a set of fast-growing developing countries to a mix of developing countries with different growth patterns. Considering the full government budget constraint, the empirical analysis shows that public spending, especially its “core” components, contributes to economic growth only in countries that are capable of using funds for productive purposes. In addition, those countries must have an adequate economic policy environment with macroeconomic stability, openness, and private sector investments that are conducive to growth.
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Bibliographic InfoArticle provided by The World Bank in its journal Economic Premise.
Volume (Year): (2011)
Issue (Month): 48 (January)
public spending; growth; developing countries; fiscal budget; government spending; economic policy; macroeconomic stability; openness; private sector;
Find related papers by JEL classification:
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sanjeev Gupta & Alejandro Simone & Alex Segura-Ubiergo, 2006.
"New Evidenceon Fiscal Adjustment and Growth in Transition Economies,"
IMF Working Papers
06/244, International Monetary Fund.
- Alex Segura-Ubiergo & Alejandro Simone & Sanjeev Gupta & Qiang Cui, 2010. "New Evidence on Fiscal Adjustment and Growth in Transition Economies," Comparative Economic Studies, Palgrave Macmillan, vol. 52(1), pages 18-37, March.
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