IDEAS home Printed from https://ideas.repec.org/a/bla/manchs/v75y2007i5p533-556.html
   My bibliography  Save this article

Public Expenditure And Economic Growth: A Disaggregated Analysis For Developing Countries

Author

Listed:
  • NILOY BOSE
  • M. EMRANUL HAQUE
  • DENISE R. OSBORN

Abstract

In this paper, we examine the growth effects of government expenditure for a panel of 30 developing countries over the 1970s and 1980s, with a particular focus on disaggregated government expenditures. Our methodology improves on previous research on this topic by explicitly recognizing the role of the government budget constraint and the possible biases arising from omitted variables. Our primary results are twofold. First, the share of government capital expenditure in GDP is positively and significantly correlated with economic growth, but current expenditure is insignificant. Second, at the disaggregated level, government investment in education and total expenditures in education are the only outlays that are significantly associated with growth once the budget constraint and omitted variables are taken into consideration.

Suggested Citation

  • Niloy Bose & M. Emranul Haque & Denise R. Osborn, 2007. "Public Expenditure And Economic Growth: A Disaggregated Analysis For Developing Countries," Manchester School, University of Manchester, vol. 75(5), pages 533-556, September.
    • Handle: RePEc:bla:manchs:v:75:y:2007:i:5:p:533-556
    DOI: 10.1111/j.1467-9957.2007.01028.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9957.2007.01028.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9957.2007.01028.x?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
    ---><---

    References listed on IDEAS

    as
    1. Charles R. Hulten, 1996. "Infrastructure Capital and Economic Growth: How Well You Use It May Be More Important Than How Much You Have," NBER Working Papers 5847, National Bureau of Economic Research, Inc.
    2. de la Fuente, Angel, 1997. "Fiscal Policy and Growth in the OECD," CEPR Discussion Papers 1755, C.E.P.R. Discussion Papers.
    3. Malcolm Knight & Norman Loayza & Delano Villanueva, 1996. "The Peace Dividend: Military Spending Cuts and Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 1-37, March.
    4. Romer,Paul M, 1989. "What determines the rate of growth and technological change?," Policy Research Working Paper Series 279, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. N Bose & M E Haque & D R Osborn, 2003. "Public Expenditure and Growth in Developing Countries: Education is the Key," Centre for Growth and Business Cycle Research Discussion Paper Series 30, Economics, The University of Manchester.
    2. Pierre‐Richard Agénor, 2009. "Infrastructure Investment and Maintenance Expenditure: Optimal Allocation Rules in a Growing Economy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(2), pages 233-250, April.
    3. Chang Woon Nam & Jan Schumacher, 2014. "Dynamics and Time Frameof Post War Recovery Required for Compensating Civil War Economic Losses," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(03), pages 79-87, August.
    4. Albert J.F. Yang & William N. Trumbull & Chin Wei Yang & Bwo‐Nung Huang, 2011. "On The Relationship Between Military Expenditure, Threat, And Economic Growth: A Nonlinear Approach," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(4), pages 449-457, April.
    5. Urrunaga, Roberto & Aparicio, Carlos, 2012. "Infrastructure and economic growth in Peru," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    6. Balassa, Bela, 1990. "Indicative planning in developing countries," Policy Research Working Paper Series 439, The World Bank.
    7. Arunatilake, Nisha & Jayasuriya, Sisira & Kelegama, Saman, 2001. "The Economic Cost of the War in Sri Lanka," World Development, Elsevier, vol. 29(9), pages 1483-1500, September.
    8. Knut Sandberg Eriksen, 2011. "Do road investments lead to economic growth?," ERSA conference papers ersa10p1613, European Regional Science Association.
    9. Chang, Hsin-Chen & Huang, Bwo-Nung & Yang, Chin Wei, 2011. "Military expenditure and economic growth across different groups: A dynamic panel Granger-causality approach," Economic Modelling, Elsevier, vol. 28(6), pages 2416-2423.
    10. Sanz Labrador, Ismael & Sanz-Sanz, José Félix, 2013. "Política fiscal y crecimiento económico: consideraciones microeconómicas y relaciones macroeconómicas," Macroeconomía del Desarrollo 5367, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    11. Giha Tobar, Yaneth & Riveros Reyes, Héctor & Soto Velasco, Andrés, 1999. "Military expenditure in Colombia: macroeconomic and microeconomic aspects," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    12. Jean-Claude Kouladoum, 2023. "Digital infrastructural development and inclusive growth in Sub-Saharan Africa," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 25(2), pages 403-427, December.
    13. Shahid Iqbal & Abdul Qayyum Khan & Muhammad Yar Khan & Lamya Al-Aali, 2021. "The Dynamics of Financial Development, Government Quality, and Economic Growth in Different Groups of Economies," Sustainability, MDPI, vol. 13(14), pages 1-14, July.
    14. Pierluigi Daddi & Giorgio d’Agostino & Luca Pieroni, 2018. "Does military spending stimulate growth? An empirical investigation in Italy," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(4), pages 440-458, June.
    15. Pereira, Ricardo Antonio de Castro & Ferreira, Pedro Cavalcanti, 2006. "Impactos de bem-estar da privatização de infra-estrutura," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 633, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    16. Calfat, Germán & Flôres, Renato G. & Acosta Rojas, Gina E., 2006. "Trade and infrastructure in the Andean Community," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    17. Mayberry, Anthony A., 2023. "Demilitarization and economic growth: Empirical evidence in support of a peace dividend," Journal of Comparative Economics, Elsevier, vol. 51(3), pages 960-988.
    18. Folster, Stefan & Henrekson, Magnus, 1999. "Growth and the public sector: a critique of the critics," European Journal of Political Economy, Elsevier, vol. 15(2), pages 337-358, June.
    19. Ologbenla Patrick, 2020. "Military Expenditure and Macroeconomic Perfromance – The Case of an Emerging Country," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 65(1), pages 67-83, April.
    20. Ward Romp & Jakob De Haan, 2007. "Public Capital and Economic Growth: A Critical Survey," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(S1), pages 6-52, April.

    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:manchs:v:75:y:2007:i:5:p:533-556. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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/semanuk.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.