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The Impacts of Public Expenditure, Government Stability and Corruption on Per Capita Growth: An Empirical Investigation on Developing Countries

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  • Selçuk Çağrı ESENER
  • Evren İPEK

Abstract

This study aims to evaluate the effects of public expenditure, government stability and corruption on economic growth with other control variables namely openness and population growth. The empirical analyses are utilized by using annual panel data for 33 countries which are classified as Upper and Lower Middle-Income Countries by World Bank. The sample period covers the years between 1999 and 2014. The empirical analyses are performed by both the static panel data approach and dynamic generalized method of moments (GMM) techniques. The estimation results point out statistically significant positive impacts of government stability and openness variables on per capita growth in these developing countries. Moreover, corruption, population growth and public expenditure variables are found to cause some significant decreasing effects on economic growth.

Suggested Citation

  • Selçuk Çağrı ESENER & Evren İPEK, 2018. "The Impacts of Public Expenditure, Government Stability and Corruption on Per Capita Growth: An Empirical Investigation on Developing Countries," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(36).
    • Handle: RePEc:sos:sosjrn:180201
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    More about this item

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • H00 - Public Economics - - General - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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