IDEAS home Printed from https://ideas.repec.org/a/ekn/ekonom/v6y2003i2p147-159.html
   My bibliography  Save this article

On Explaining the Differences in Economic Growth Rates in OECD Countries

Author

Listed:
  • Sal Amirkhalkhali

    (Department of Economics, Saint Mary’s University, Halifax, NS, Canada)

  • Atul Dar

    (Department of Economics, Saint Mary’s University, Halifax, NS, Canada)

Abstract

In this study, we examine the role played by fiscal policy in explaining the differences in economic growth rates of the nineteen OECD countries over the 1971-1999 period. We model the impact of government spending variables (which can be taken as indicators of the size of government) on economic growth via their impact on total factor productivity, and estimate the model using the random coefficients approach. Our results indicate that total factor productivity growth is impacted adversely by the size of government, when total government outlays (relative to GDP) are used to measure government size. On the other hand, if we measure government size in terms of the growth of government consumption, the impact is unambiguously positive. The difference is likely due to the fact that government transfers were the reason behind the sharp upward trend in fiscal deficits over this period, resulting in high taxation levels. In both cases, the evidence is not strong enough to suggest a monotonic relationship between the magnitude of this impact and government size.

Suggested Citation

  • Sal Amirkhalkhali & Atul Dar, 2003. "On Explaining the Differences in Economic Growth Rates in OECD Countries," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 6(2), pages 147-159, Winter.
  • Handle: RePEc:ekn:ekonom:v:6:y:2003:i:2:p:147-159
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sal AMIRKHALKHALI & Atul A. DAR, 2012. "On Explaining Inter-Country Differences in Economic Growth Rates of OECD countries for 1996-2008: Does Regulatory Quality Matter," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 12(2).

    More about this item

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    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:ekn:ekonom:v:6:y:2003:i:2:p:147-159. 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: (Managing Editor). General contact details of provider: http://edirc.repec.org/data/cyessea.html .

    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.

    We have no references for this item. You can help adding them by using 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.