Government Activity and Economic Performance in a Small Developing Economy.
This paper develops a model that allows for a direct assessment of the relationship between economic growth and a wide selection of variables in the literature including the size of government. The model is estimated using time-series data f or the period 1972-1986 for the small economy of Barbados. Our results show that exports, capital formation and government debt have enhancing effects on economic growth in this small economy. Government size and special interest group activity are shown to have negative effects. We find some basic differences in the determinants of growth in a small economy and those established in the literature using more aggregate data. Our results suggest that the link between economic growth and government activity can to clarified further by disaggregating countries by size and level of development.
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Volume (Year): 44 (1991)
Issue (Month): 2-3 ()
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