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Growth Effects of Governmental Policies: A Comparative Analysis in a Multi‐Country Context

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  • Martijn R.E. Brons
  • Henri L.F. De Groot
  • Peter Nijkamp

Abstract

The potential interactions among governmental policies, investments andeconomic growth are complex and manifold. This paper will perform a systematic comparative analysis of the various economic insights that are currently available on these complex relationships, both theoretically (by a selective literature review) and empirically (by reviewing the empirically obtained insights). Despite the wide variety of potential theoretical relationshipsbetween government expenditures, taxation and growth, most empirical analyses are restricted to simple linear regressions of growth on some measure of government expenditures. We will indicate directions for future empirical research that may enrich our knowledge about the complex relationship between fiscal policies and economic growth, not only nationally but also regionally.

Suggested Citation

  • Martijn R.E. Brons & Henri L.F. De Groot & Peter Nijkamp, 2000. "Growth Effects of Governmental Policies: A Comparative Analysis in a Multi‐Country Context," Growth and Change, Wiley Blackwell, vol. 31(4), pages 547-572.
    • Handle: RePEc:bla:growch:v:31:y:2000:i:4:p:547-572
    DOI: 10.1111/0017-4815.00144
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    Cited by:

    1. S. Maheswaranathan & K.M.N. Jeewanthi, 2021. "Empirical Investigation of the Influence of Fiscal Policy on Sri Lankas Economic Growth from 1990 to 2019," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 9(2), pages 122-131, June.
    2. Nikos Benos, 2005. "Fiscal Policy and Economic Growth: Empirical Evidence from OECD," University of Cyprus Working Papers in Economics 1-2005, University of Cyprus Department of Economics.
    3. FARAYIBI, Adesoji & OWURU, Joel, 2016. "Linkage between Fiscal Policy and Poverty Reduction in Nigeria," MPRA Paper 74678, University Library of Munich, Germany.
    4. FIC Tatiana & GHATE Chetan, 2010. "Economic Growth and the Welfare State: A Model of Breaks and Starts," EcoMod2003 330700054, EcoMod.
    5. Owuru, Joel & FARAYIBI, Adesoji, 2016. "Examining the Fiscal Policy-Poverty Reduction Nexus in Nigeria," MPRA Paper 74184, University Library of Munich, Germany.
    6. Sarantis Kalyvitis, 2003. "Public Investment Rules and Endogenous Growth with Empirical Evidence From Canada," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(1), pages 90-110, February.
    7. Maria Rosaria Alfano, 2005. "Tax Competition in EU implies EMTR different: some effects on FDI and Economic Growth Rate," Public Economics 0510015, University Library of Munich, Germany.

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