IDEAS home Printed from https://ideas.repec.org/a/bla/glopol/v9y2018i2p203-215.html
   My bibliography  Save this article

Does Government Expenditure Matter for Economic Growth?

Author

Listed:
  • Marion Laboure
  • Emmanuelle Taugourdeau

Abstract

This paper aims to determine how the composition of public expenditure affects countries’ economic growth depending on their level of development. We show that there is a strong association between a country's level of development and the amount of public spending. Productive spending dominates in poorer countries while richer countries have a higher proportion of unproductive spending. Furthermore, productive spending has a greater effect on growth in poorer countries. We illustrate our findings using dynamic panel GMM estimators with data from 147 countries (31 low, 69 medium and 47 high†income countries) covering the period 1970–2008. We also find that education expenditures are the more productive public spending.

Suggested Citation

  • Marion Laboure & Emmanuelle Taugourdeau, 2018. "Does Government Expenditure Matter for Economic Growth?," Global Policy, London School of Economics and Political Science, vol. 9(2), pages 203-215, May.
    • Handle: RePEc:bla:glopol:v:9:y:2018:i:2:p:203-215
    DOI: 10.1111/1758-5899.12540
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1758-5899.12540
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1758-5899.12540?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luca Romagnoli & Paola Di Renzo & Luigi Mastronardi, 2022. "Modelling Income Drivers in Peripheral Municipalities: The Case of Italian Inner Areas," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    2. Shvets, Serhii, 2020. "The golden rule of public finance under active monetary stance: endogenous setting for a developing economy," MPRA Paper 101232, University Library of Munich, Germany.

    More about this item

    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:bla:glopol:v:9:y:2018:i:2:p:203-215. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    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.