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Economic growth, repression, and state expenditure in non-democratic regimes

Listed author(s):
  • Islam, Muhammed N.
Registered author(s):

    This paper examines how economic growth affects government spending in non-democracies. A robust finding is that positive growth induces a significant increase in defence spending but a decrease in non-defence spending in dictatorships, with little effect in democracies. Government spending is slightly sensitive to negative growth across regimes. Higher growth rate in a country than its neighbours induces more spending than their average. Corruption causes a reduction in defence spending but an increase in non-defence spending. Primary education stimulates non-defence spending but reduces defence expenditure, secondary education causing the opposite effect. An under-developed country spends less than a developed country.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0176268014000998
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    Article provided by Elsevier in its journal European Journal of Political Economy.

    Volume (Year): 37 (2015)
    Issue (Month): C ()
    Pages: 68-85

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    Handle: RePEc:eee:poleco:v:37:y:2015:i:c:p:68-85
    DOI: 10.1016/j.ejpoleco.2014.10.006
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505544

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