The Scope of Government and its Impact on Economic Growth in OECD Countries
AbstractThis paper investigates the relationship between the size of government and economic growth in OECD countries in 1960Â–2000. The underlying idea is that government expenditures on public goods basically have a positive effect on growth, but this growth effect tends to decline or even reverse when government is overdoing, e.g. by increasing expenditures in such a way that it ultimately also provides private goods. Empirical analyses based on panel estimates for 21 OECD countries support this hypothesis: Total government expenditures as well as expenditures by type indicate a significant negative impact on economic growth (excepting transfers and public investments).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1034.
Length: 32 pages
Date of creation: Apr 2001
Date of revision:
Government expenditure; taxation and economic growth;
Find related papers by JEL classification:
- H1 - Public Economics - - Structure and Scope of Government
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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.:
- ?gel de la Fuente & Rafael Dom?ech, .
"Human Capital In Growth Regressions: How Much Difference Does Data Quality Make?,"
UFAE and IAE Working Papers, Unitat de Fonaments de l'AnÃ lisi EconÃ²mica (UAB) and Institut d'AnÃ lisi EconÃ²mica (CSIC)
446.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Angel de la Fuente & Rafael Doménech, 2006. "Human Capital in Growth Regressions: How Much Difference Does Data Quality Make?," Journal of the European Economic Association, MIT Press, MIT Press, vol. 4(1), pages 1-36, 03.
- de la Fuente, Angel & Doménech, Rafael, 2000. "Human Capital In Growth Regressions: How Much Difference Does Data Quality Make?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2466, C.E.P.R. Discussion Papers.
- Angel de la Fuente & Rafael Donénech, 2000. "Human Capital in Growth Regressions: How much Difference Does Data Quality Make?," OECD Economics Department Working Papers, OECD Publishing 262, OECD Publishing.
- Mankiw, N Gregory & Romer, David & Weil, David N, 1992.
"A Contribution to the Empirics of Economic Growth,"
The Quarterly Journal of Economics, MIT Press,
MIT Press, vol. 107(2), pages 407-37, May.
- Assar Lindbeck, 1997. "The Swedish Experiment," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 35(3), pages 1273-1319, September.
- James Gwartney & Randal Holcombe & Robert Lawson, 1998. "The Scope of Government and the Wealth of Nations," Cato Journal, Cato Journal, Cato Institute, Cato Journal, Cato Institute, vol. 18(2), pages 163-190, Fall.
- Scheide, Joachim, 2005. "Makroökonomie Theorie und wirtschaftspolitische Beratung," Open Access Publications from Kiel Institute for the World Economy, Kiel Institute for the World Economy (IfW) 3761, Kiel Institute for the World Economy (IfW).
- Dushko, Josheski & Darko, Lazarov & Cane, Koteski, 2011.
"Analysis of the optimal size of the government consumption,"
32063, University Library of Munich, Germany.
- Josheski, Dushko & Lazarov, Darko & Koteski, Cane, 2011. "Analysis of the optimal size of the government consumption," MPRA Paper 32983, University Library of Munich, Germany.
- Susana Martins & Francisco José Veiga, 2013. "Government size, composition of public expenditure, and economic development," NIPE Working Papers, NIPE - Universidade do Minho 17/2013, NIPE - Universidade do Minho.
- Heinz Handler & Andreas Knabe & Bertrand Koebel & Margit Schratzenstaller & Sven Wehke, 2005. "The Impact of Public Budgets on Overall Productivity Growth," WIFO Working Papers, WIFO 255, WIFO.
- Kamps, Christophe & Meier, Carsten-Patrick & Oskamp, Frank, 2004. "Wachstum des Produktionspotentials in Deutschland bleibt schwach," Kiel Discussion Papers, Kiel Institute for the World Economy (IfW) 414, Kiel Institute for the World Economy (IfW).
- Magazzino, Cosimo & Forte, Francesco, 2010. "Optimal size of government and economic growth in EU-27," MPRA Paper 26669, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dieter Stribny).
If references are entirely missing, you can add them using this form.