IDEAS home Printed from https://ideas.repec.org/a/ris/apecjn/0033.html

Government Size and Economic Growth: A Panel Data Study Comparing OECD and Non-OECD Countries

Author

Listed:
  • Sheraz Rajput

    (Department of Business Administration, Sukkur IBA University.)

  • Aziz Tariq

    (Department of Business Administration, Sukkur IBA University.)

Abstract

This study examines the non-linear relationship between government size and economic growth following Armey (1995). Generalized Method of Moments (GMM) estimation technique is applied to panel data consisting of 89 countries from 1990 to 2018. The results show substantial evidence for Armey curve across non-OECD countries. The findings suggest that a rise in government size initially enhances economic growth but later government size reduces economic growth once the government size crosses a certain threshold. However, the findings relating to the OECD countries do not support the presence of Armey curve.

Suggested Citation

  • Sheraz Rajput & Aziz Tariq, 2019. "Government Size and Economic Growth: A Panel Data Study Comparing OECD and Non-OECD Countries," Asian Journal of Applied Economics/ Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 26(2), pages 22-37.
    • Handle: RePEc:ris:apecjn:0033
    as

    Download full text from publisher

    File URL: https://so01.tci-thaijo.org/index.php/AEJ/article/view/207847/163601
    File Function: Full text
    Download Restriction: Asian Journal of Applied Economics/ Applied Economics Journal
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

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


    Cited by:

    1. Menescal, Lucas & Alves, José, 2024. "Optimal threshold taxation: An empirical investigation for developing economies," The Journal of Economic Asymmetries, Elsevier, vol. 29(C).
    2. Coayla, Edelina, 2021. "The Optimal Size of Government and the Armey Curve: A Review of Empirical Evidence," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 28(01).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

    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:ris:apecjn:0033. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Arannee Tongjankaew (email available below). General contact details of provider: https://edirc.repec.org/data/feckuth.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.