The purpose of this paper is to determine which components of public spending have influence on economic growth. The sample is composed by the Brazilian states over the period 1986-2002. Initially the spending is classified according its economic characteristics: current or capital. Later it is classified according its funcional characteristics: defence, education, health, transport and communication. The empirical evidence points that current spending is improductive in the sense it does not enhance economic growth. Capital spending, defence, education, transport and communication, on the other hand, are productive.
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Length: Date of creation: 2005 Date of revision: Handle: RePEc:anp:en2005:049
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Find related papers by JEL classification: H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
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