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The Relationship Between Government Size and Economic Growth: Evidence From a Panel Data Analysis

Author

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  • Yesim Kustepeli

    () (Department of Economics, Faculty of Business, Dokuz Eylül University)

Abstract

Using a panel data analysis, the relationship between government size and economic growth is investigated for the 1994-2001 period. The results show that relatively small sizes of government are detrimental to economic growth, while medium sized government affects it positively.

Suggested Citation

  • Yesim Kustepeli, 2005. "The Relationship Between Government Size and Economic Growth: Evidence From a Panel Data Analysis," Discussion Paper Series 05/06, Dokuz Eylül University, Faculty of Business, Department of Economics, revised 06 Dec 2005.
  • Handle: RePEc:deu:dpaper:0506
    as

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    File URL: http://www.deu.edu.tr/UploadedFiles/Birimler/12741/05_06.pdf
    File Function: First version, 2005
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    References listed on IDEAS

    as
    1. Anaman, Kwabena A., 2004. "Determinants of economic growth in Brunei Darussalam," Journal of Asian Economics, Elsevier, vol. 15(4), pages 777-796, August.
    2. Bajo-Rubio, Oscar, 2000. "A further generalization of the Solow growth model: the role of the public sector," Economics Letters, Elsevier, vol. 68(1), pages 79-84, July.
    3. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    4. Guseh, James S., 1997. "Government Size and Economic Growth in Developing Countries: A Political-Economy Framework," Journal of Macroeconomics, Elsevier, vol. 19(1), pages 175-192, January.
    5. Basil Dalamagas, 2000. "Public sector and economic growth: the Greek experience," Applied Economics, Taylor & Francis Journals, vol. 32(3), pages 277-288.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
    2. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
    3. Robert Pater & Tomasz Skica, 2014. "The productivity of public and private sector in Poland," Business and Economic Horizons (BEH), Prague Development Center, vol. 10(2), pages 120-137, July.

    More about this item

    Keywords

    government size; economic growth; panel data; new European Union members and candidates;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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