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Size of government and economic growth in the largest Latin American country

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  • Helder Ferreira de Mendon �a
  • Thiago Cacicedo

Abstract

This article provides empirical evidence regarding the effect of the size of government on economic growth in the Brazilian economy for the period from January 2000 to March 2013. In particular, an analysis is conducted to see whether the Armey curve fits well for the Brazilian case and the optimal government size is also estimated. The findings indicate that an increase in the size of government contributes to economic growth and that the optimal size for the Brazilian government would be approximately 22% of GDP. Brazil crossed over this limit in 2005.

Suggested Citation

  • Helder Ferreira de Mendon �a & Thiago Cacicedo, 2015. "Size of government and economic growth in the largest Latin American country," Applied Economics Letters, Taylor & Francis Journals, vol. 22(11), pages 904-910, July.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:11:p:904-910
    DOI: 10.1080/13504851.2014.987909
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    References listed on IDEAS

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    Cited by:

    1. Helder Ferreira de Mendonça & Ana Jordânia de Oliveira, 2019. "Openness and government size: A new empirical assessment," Economics Bulletin, AccessEcon, vol. 39(2), pages 982-995.
    2. Doré, Natalia I. & Teixeira, Aurora A.C., 2023. "The role of human capital, structural change, and institutional quality on Brazil's economic growth over the last two hundred years (1822–2019)," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 1-12.
    3. Hüseyin Şen & Ayşe Kaya & Ayşegül Durucan, 2023. "New insights into the growth-maximizing size of government: evidence and implications for Turkey," Economic Change and Restructuring, Springer, vol. 56(4), pages 2243-2296, August.
    4. Pelin Varol Iyidogan & Taner Turan, 2017. "Government Size and Economic Growth in Turkey: A Threshold Regression Analysis," Prague Economic Papers, Prague University of Economics and Business, vol. 2017(2), pages 142-154.
    5. 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(1).

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