IDEAS home Printed from https://ideas.repec.org/p/sek/iacpro/3606344.html
   My bibliography  Save this paper

The impact of government size and composition on growth in EU15 countries

Author

Listed:
  • Silvia Golem

    (Faculty of Economics University of Split)

Abstract

The goal of this paper is to investigate the long-run effect of government size and composition on growth. Unlike previous studies, this paper employs an improved dataset and a more adequate econometric technique. Using pooled mean group (PMG) estimation approach, which is particularly suitable because it allows short-term adjustments and convergence speeds to vary across countries while imposing cross-country homogeneity restrictions on the long-run coefficients, we empirically test the relationship between growth and government size and its composition in developed European economies, over the period 1970 to 2014. The obtained results indicate that high aggregate spending levels are an impediment for growth in developed economies, while the single most important government expenditure item is - Education.

Suggested Citation

  • Silvia Golem, 2016. "The impact of government size and composition on growth in EU15 countries," Proceedings of International Academic Conferences 3606344, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:3606344
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/23rd-international-academic-conference-venice/table-of-content/detail?cid=36&iid=037&rid=6344
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    government size; GDP growth; PMG estimation; EU;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:iacpro:3606344. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.