Public Sector’s Influence on Economic Growth and Convergence as a Proof of Development

Increasing people’s standard of living is one of the main goal of every economic system and maybe is the best evidence of the economic growth and development occurrence. Nowadays the economies based on private property, prevails all over the world, however public sector is becoming more and more influential due to the scarcity of public resources, that are not always catching up with the expansion of consumptions to be accomplished by the government. Thus the size of budgetary funds, manner of apportionment and their economic development correlation with, are major interest fields, able to make a difference between countries with similar characteristics and potential. The present article aims to identify the relevance between government expenditure and economic performance, by developed and developing economies, depending on some variables as budget constraints or nature of public expense, and to examine the convergence in terms of speed, time and public sector contribution, in order to outline some realistic future expectations regarding the improvement in the overall economic conditions.