IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Social Welfare Expenditure, Human Capital, and Economic Growth: Evidence from Taiwan

Listed author(s):
  • Chien-Chiang Lee

    (Department of Applied Economics, National Chung Hsing University, Taiwan)

  • Chun-Ping Chang

    (Department of Business Administration, Shih Chien University, Kaohsiung Campus, Taiwan)

Can extending social welfare expenditures promote economic growth? This issue has been discussed extensively, with some research pointing to net benefits while others find a net negative impact. Insight can be gained by careful analysis of several sub-questions. For example, for two countries with the same social welfare expenditures, will increased social welfare expenditures in one lead to different economic growth rates? What is the channel by which such expenditures impact economic growth? What is the function of social welfare expenditures? This paper adopts simultaneous equations with three-stage least squares to investigate the relationships among social welfare expenditures, human capital, and economic growth using data on Taiwan between 1952 and 2003. We find that accumulated human capital is a critical channel linking social welfare expenditures to economic growth. Consequently, we provide a new perspective on the value of social welfare policy when government resources are limited. This view is consistent with empirical evidence that shows two countries may have identical social welfare expenditures but exhibit different economic growth rates.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

File URL:
Download Restriction: no

Article provided by College of Business, Feng Chia University, Taiwan in its journal Journal of Economics and Management.

Volume (Year): 3 (2007)
Issue (Month): 2 (July)
Pages: 225-247

in new window

Handle: RePEc:jec:journl:v:3:y:2007:i:2:p:225-247
Contact details of provider: Postal:
100 Wenhwa Road, Seatwen, Taichung

Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:jec:journl:v:3:y:2007:i:2:p:225-247. 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: (Yi-Ju Su)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.