Government expenditure and economic growth in the European Union countries: New evidence
DOI:
https://doi.org/10.1515/bog-2017-0020Abstract
This paper provides new evidence of the impact of government spending on economic growth in the European Union countries. Governments can adjust their levels of spending in order to influence their economies, although the relationship between these variables can be positive or negative, depending on the countries included in the sample, the period of estimation and the variables which reflect the size of the public sector. The results obtained based on regression and panel techniques suggest that government expenditure is not clearly related with economic growth in the European Union countries over the period 1994-2012.References
Afonso, A. and Tovar Jalles, J., 2011: Economic performance and government size. In: Working paper series, European Central Bank, N. 1399, November 2011.
Arrpaia, A. and Turrini, A., 2008: Government expenditure and economic growth in the European Uniorn: long run tendencies and short-term adjustment. In: European Economy, Economic Papers, 300, pp. 1-50.
Barro, R.J., 1991: Economic growth in a Cross Section of Countries In: Quarterly Journal of Economics, Vol. 106, pp. 407-444. DOI: https://doi.org/10.2307/2937943
Basil, D., 2000: Public sector and economic growth: the Greek experience. In: Applied Economics, Vol. 32(3), pp. 277-288. DOI: http://dx.doi.org/10.1080/000368400322705
Chen, S.T. and Lee, C.C., 2005: Government Size and Economic Growth in Taiwan: A Threshold Regression Approach In: Journal of Policy Modelling, Vol. 27, pp. 1051-1066. DOI: http://dx.doi.org/10.1016/j.jpolmod.2005.06.006
Feder, G., 1983: On Exports and Economic Growth In: Journal of Development Economics, Vol. 12, pp. 59-73. DOI: http://dx.doi.org/10.1016/0304-3878(83)90031-7
Fölster, S. and Henrekson, M., 1997: Growth and the Public Sector: A Critique of the Critics In: European Journal of Political Economy, Vol. 15, pp. 337-358. DOI: http://dx.doi.org/10.1016/S0176-2680(99)00010-5
Gonzalez-Paramo, J.M. and Martinez, D., 2003: Convergence across Spanish Regions: New Evidence on the Effects of Public Investment In: Review of Regional Studies, Vol. 33, pp. 184-205.
Greene, W.H., 2003: Econometric Analysis. 5th Edition, Prentice Hall, New York.
Grier, K.B. and Tullock, G., 1989: An Empirical Analysis of Cross National Economic Growth, 1951-1980. In: Journal of Monetary Economics. DOI: http://dx.doi.org/10.1016/0304-3932(89)90006-8
Irmen, A. and Kuehnel J. 2008, Productive Government Expenditure and Economic Growth. In: University of Heildelberg, Discussion Paper Series, 464, pp. 1-49. Available at: http://www.uni-heidelberg.de/md/awi/forschung/dp464.pdf
Kormendi, R.C. and Meguire, P.G., 1985: Macroeconomic Determinants of Growth: Cross-Country Evidence In: Journal of Monetary Economics, Vol. 16, pp. 141-163. DOI: http://dx.doi.org/10.1016/0304-3932(85)90027-3
Landau, D., 1983: Government Expenditure and Economic Growth: A Cross-Country Study In: Southern Economic Journal, Vol. 49, pp. 783-792.
Lin, S.A., 1994: Government spending and Economic Growth. In: Applied Economics, Vol. 26, pp. 83-94. DOI: http://dx.doi.org/10.1080/00036849400000064
Loizides, J. and Vamvoukas, G. 2005: Government expenditure and economic growth: evidence from trivariate causality testing. In: Journal of Applied Economics, Vol. 1, pp. 125-152. Available at https://core.ac.uk/download/pdf/7146337.pdf
Ram, R., 1986: Government Size and Economic Growth: A New Framework and some Evidence from Cross-Section and Time-Series data In: American Economic Review, Vol. 76, pp. 191-203.
Rubinson, R., 1977: Dependency, Government Revenue and Economic Growth, 1955-1970 In: Studies in Comparative International Development, Vol. 12, pp. 3-28.
Sheehey, E., 1993: The Effect of Government Size on Economic Growth In: Eastern Economic Journal, Vol. 19(3), pp. 321-328. DOI: http://www.jstor.org/stable/40325856 Tanzi, V. and Zee, H.H., 1997: Fiscal Policy and Long-Run Growth. In: IMF Staff Papers, Vol. 44, pp. 179-209.
Zimcík, P., 2016: Economic Growth and budget constraints: EU countries panel data analysis. Issue 2/2016. In: Review of Economic Perspectives, Vol. 2, pp. 87-101.
Downloads
Published
How to Cite
Issue
Section
License
Title, logo and layout of journal Bulletin of Geography. Socio-economic Series are reserved trademarks of Bulletin of Geography. Socio-economic Series.Stats
Number of views and downloads: 521
Number of citations: 18