Decomposition of the effect of government size on growth
AbstractEmpirical results through a fixed effects regression model show that government size has a negative effect on growth mainly through hampering capital accumulation. When a sample is divided into OECD and non-OECD countries, the negative effect of government size on capital accumulation persists for non-OECD countries but not for OECD countries.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 23972.
Date of creation: 10 May 2010
Date of revision:
Government size; Efficiency improvement; Capital accumulation; Fixed effects;
Other versions of this item:
- Yamamura, Eiji, 2011. "Decomposition of the effect of government size on growth," Economics Letters, Elsevier, vol. 112(3), pages 230-232, September.
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-24 (All new papers)
- NEP-EFF-2010-07-24 (Efficiency & Productivity)
- NEP-FDG-2010-07-24 (Financial Development & Growth)
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