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POLICY ARENA: Bureaucrats, Business and Economic Growth

Author

Listed:
  • Hossein Jalilian

    (Development and Project Planning Centre, University of Bradford, UK)

  • John Weiss

    (Development and Project Planning Centre, University of Bradford, UK)

Abstract

This article uses the database from the World Bank study, Bureaucrats in Business, to test the hypothesis central to the study and much more recent policy thinking that countries with large state sectors have a poorer than average economic performance. Two tests are conducted: one, a simple difference of means calculation and the other a more rigorous cross-country analysis using panel data to pick up country-specific effects. In neither instance is there any support for the hypothesis. This inconclusive result is none the less important since it supports the view that it is not the absolute size of the state sector per se which matters for economic performance but the type of state activity and the way in which state enterprises operate. © 1997 John Wiley & Sons, Ltd.

Suggested Citation

  • Hossein Jalilian & John Weiss, 1997. "POLICY ARENA: Bureaucrats, Business and Economic Growth," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(6), pages 877-885.
    • Handle: RePEc:wly:jintdv:v:9:y:1997:i:6:p:877-885
    DOI: 10.1002/(SICI)1099-1328(199709)9:6<877::AID-JID490>3.0.CO;2-A
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    References listed on IDEAS

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    1. De Gregorio, Jose, 1992. "Economic growth in Latin America," Journal of Development Economics, Elsevier, vol. 39(1), pages 59-84, July.
    2. Delano S Villanueva & Roberto S Mariano & Diwa C Guinigundo & Abbas Mirakhor, 2023. "Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach," World Scientific Book Chapters, in: Economic Adjustment and Growth Theory and Practice, chapter 2, pages 10-43, World Scientific Publishing Co. Pte. Ltd..
    3. Robert J. Barro & Jong-Wha Lee, 1993. "Losers and Winners in Economic Growth," NBER Working Papers 4341, National Bureau of Economic Research, Inc.
    4. Ojo, Oladeji & Oshikoya, Temitope, 1995. "Determinants of Long-Term Growth: Some African Results," Journal of African Economies, Centre for the Study of African Economies, vol. 4(2), pages 163-191, October.
    5. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 1127-1170.
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    Cited by:

    1. Huang, Xianfeng & Li, Ping & Lotspeich, Richard, 2010. "Economic growth and multi-tasking by state-owned enterprises: An analytic framework and empirical study based on Chinese provincial data," Economic Systems, Elsevier, vol. 34(2), pages 160-177, June.
    2. Zhou, Xiaoyan & Zhang, Jie & Li, Junpeng, 2013. "Industrial structural transformation and carbon dioxide emissions in China," Energy Policy, Elsevier, vol. 57(C), pages 43-51.
    3. Hao Qi & David M. Kotz, 2020. "The Impact of State-Owned Enterprises on China’s Economic Growth," Review of Radical Political Economics, Union for Radical Political Economics, vol. 52(1), pages 96-114, March.

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