Does Economic Performance Correlate with Big Government?
Development is a systematic and evolutionary process, which is not limited to the improvement of economic performance per se. Institutions that support economic freedom and governments that may or may not support development and freedom probably evolve together. A recent study by La Porta et al (1999) examines these relationships and finds, among other things, that there is a positive link between big government and economic development. We reexamine these links with international cross-sectional data for five periods and find that economic freedom and development do reinforce each other but that the size and scope of government does not play a strong role.
Volume (Year): 1 (2004)
Issue (Month): 2 (August)
|Contact details of provider:|| Postal: Enterprise Hall, Room 354, 4400 University Drive, 3G4 Fairfax, VA 22030|
Phone: (703) 993-1151
Web page: https://econjwatch.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2002.
"Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 117(4), pages 1231-1294.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," NBER Working Papers 8460, National Bureau of Economic Research, Inc.
- Folster, Stefan & Henrekson, Magnus, 2001.
"Growth effects of government expenditure and taxation in rich countries,"
European Economic Review,
Elsevier, vol. 45(8), pages 1501-1520, August.
- Fölster, Stefan & Henrekson, Magnus, 1998. "Growth Effects of Government Expenditure and Taxation in Rich Countries," Working Paper Series 503, Research Institute of Industrial Economics, revised 20 Jun 2000.
- Fölster, Stefan & Henrekson, Magnus, 2000. "Growth Effects of Government Expenditure and Taxation in Rich Countries," SSE/EFI Working Paper Series in Economics and Finance 391, Stockholm School of Economics.
- Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, .
"The Quality of Government,"
19452, Harvard University OpenScholar.
- Andrei Shleifer & Robert W. Vishny, 1998. "The Quality of Government," Harvard Institute of Economic Research Working Papers 1847, Harvard - Institute of Economic Research.
- Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, 1998. "The Quality of Goverment," NBER Working Papers 6727, National Bureau of Economic Research, Inc.
- Andrzej Rapaczynski, 1996. "The Roles of the State and the Market in Establishing Property Rights," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 87-103, Spring.
- Fölster, Stefan & Henrekson, Magnus, 1997.
"Growth and the Public Sector: A Critique of the Critics,"
Working Paper Series
492, Research Institute of Industrial Economics, revised 10 Jun 1998.
- 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.
- Dawson, John W., 2003.
"Causality in the freedom-growth relationship,"
European Journal of Political Economy,
Elsevier, vol. 19(3), pages 479-495, September.
- Agell, Jonas & Lindh, Thomas & Ohlsson, Henry, 1997.
"Growth and the public sector: A critical review essay,"
European Journal of Political Economy,
Elsevier, vol. 13(1), pages 33-52, February.
- Ohlsson, H. & Agell, J. & Lindh, T., 1995. "Growth and the Public Sector: A Critical Review Essay," Papers 1995-09, Uppsala - Working Paper Series.
- World Bank, 2003. "World Development Indicators 2003," World Bank Publications, The World Bank, number 13920, July.
- repec:cto:journl:v:18:y:1998:i:2:p: is not listed on IDEAS
- Pranab Bardhan, 1993. "Symposium on Democracy and Development," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 45-49, Summer.
- James Gwartney & Randal Holcombe & Robert Lawson, 1998. "The Scope of Government and the Wealth of Nations," Cato Journal, Cato Journal, Cato Institute, vol. 18(2), pages 163-190, Fall.
- W. Kenn Farr & Richard A. Lord & J. Larry Wolfenbarger, 1998. "Economic Freedom, Political Freedom, and Economic Well-Being: A Causality Analysis," Cato Journal, Cato Journal, Cato Institute, vol. 18(2), pages 247-262, Fall.
- Manuel Vega-Gordillo & JosÃ© L. Ã lvarez-Arce, 2003. "Economic Growth and Freedom: A Causality Study," Cato Journal, Cato Journal, Cato Institute, vol. 23(2), pages 199-215, Fall.
- KIRMANOGLU Hasan, . "Political Freedom and Economic Well-being: A Causality Analysis," EcoMod2003 330700081, EcoMod.
- Davis, Lance & North, Douglass, 1970. "Institutional Change and American Economic Growth: A First Step Towards a Theory of Institutional Innovation," The Journal of Economic History, Cambridge University Press, vol. 30(01), pages 131-149, March.
- de Haan, Jakob & Sturm, Jan-Egbert, 2003. "Does more democracy lead to greater economic freedom? New evidence for developing countries," European Journal of Political Economy, Elsevier, vol. 19(3), pages 547-563, September.
- Berggren, Niclas, 2003. "The Benefits of Economic Freedom: A Survey," Ratio Working Papers 4, The Ratio Institute.
- Benjamin Powell, 2003. "Economic Freedom and Growth: The Case of the Celtic Tiger," Cato Journal, Cato Journal, Cato Institute, vol. 22(3), pages 431-448, Winter.
- Zucker, Lynne G & Darby, Michael R, 1999. "Comment on "The Quality of Government": Why Do Some Governments Have Better Institutions Than Others?," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 280-82, April.
- Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
This item is featured on the following reading lists or Wikipedia pages:
- Does Economic Performance Correlate with Big Government? (EJW 2004) in ReplicationWiki
When requesting a correction, please mention this item's handle: RePEc:ejw:journl:v:1:y:2004:i:2:p:192-221. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jason Briggeman)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.