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The Relationship Between Government Size and Economic Growth: Evidence From a Panel Data Analysis

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  • Yesim Kustepeli

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    (Department of Economics, Faculty of Business, Dokuz Eylül University)

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    Abstract

    Using a panel data analysis, the relationship between government size and economic growth is investigated for the 1994-2001 period. The results show that relatively small sizes of government are detrimental to economic growth, while medium sized government affects it positively.

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    File URL: http://www.deu.edu.tr/UploadedFiles/Birimler/12741/05_06.pdf
    File Function: First version, 2005
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    Bibliographic Info

    Paper provided by Dokuz Eylül University, Faculty of Business, Department of Economics in its series Discussion Paper Series with number 05/06.

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    Length: 10 pages
    Date of creation: 06 Dec 2005
    Date of revision: 06 Dec 2005
    Handle: RePEc:deu:dpaper:0506

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    Web page: http://www.deu.edu.tr/DEUWeb/Icerik/Icerik.php?KOD=442
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    Related research

    Keywords: government size; economic growth; panel data; new European Union members and candidates;

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    1. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
    2. Guseh, James S., 1997. "Government Size and Economic Growth in Developing Countries: A Political-Economy Framework," Journal of Macroeconomics, Elsevier, vol. 19(1), pages 175-192, January.
    3. Bajo-Rubio, Oscar, 2000. "A further generalization of the Solow growth model: the role of the public sector," Economics Letters, Elsevier, vol. 68(1), pages 79-84, July.
    4. Basil Dalamagas, 2000. "Public sector and economic growth: the Greek experience," Applied Economics, Taylor & Francis Journals, vol. 32(3), pages 277-288.
    5. Anaman, Kwabena A., 2004. "Determinants of economic growth in Brunei Darussalam," Journal of Asian Economics, Elsevier, vol. 15(4), pages 777-796, August.
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    Cited by:
    1. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.

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