Donath, Liliana and Milos, Marius Cristian and Milos, Laura Raisa (2008): Public investment and economic growth in the European Union member states.
Download (346Kb) | Preview
The issue of public investments became a very challenging subject for public decision makers since it incorporates the question of state performance, the quality of public finance and their effects on growth.The quality of public finance (QPF) is a multidimensional concept. It may be regarded as representing all the arrangements and operations regarding the financial politics that sustain the macroeconomic objectives, particularly the long-term economic growth. Financial policies at European level highlight the fact that a concentration of the public expenses in areas that stimulate the economic growth and a more efficient use of the public resources are key methods for sustaining the economic growth. The empirical proofs seem to support the assumption according to which certain types of public expenses can supply incentives and other can negatively influence the economic growth. The paper tries to reveal the effects of capital spending on economic growth (GDP per capita) for the European Union member states. The gross domestic product per capita and the capital expenses (functional classification of public expenses - “COFOG”) have been obtained by considering the Eurostat statistics, the measurement unit for the dependent variable and for the independent one is the EURO, while the period of analyze is of 7 years ( 2000-2006)
|Item Type:||MPRA Paper|
|Original Title:||Public investment and economic growth in the European Union member states|
|Keywords:||public spending, performance, efficiency, capital expenses|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H50 - General|
|Depositing User:||Marius Milos|
|Date Deposited:||23. Jan 2009 08:36|
|Last Modified:||17. Feb 2013 18:05|
1. AfonsoA, St. Aubyn , Cross-country efficiency of secondary education provision:A semi-parametric analysis with nondiscretionary inputs,Economic Modelling, 23 (3), 2006a
2. Afonso, A., L. Schuknecht, and V. Tanzi, Public sector efficiency: An international comparison', ECB Working Paper No. 242 (Frankfurt: European Central Bank), 2003
3. Afonso, A., L. Schuknecht, and V. Tanzi , Public sector efficiency. Evidence for new EU Member States and emerging markets, ECB Working Paper No. 581 (Frankfurt: European Central Bank), 2006
4. Arpaia, A. and A. Turrini , Government expenditure and economic growth in the EU: long-run tendencies and short-run adjustment', European Economy − Economy Paper No. 300 (Brussels:European Commission), 2008
5. Curristine, T., 'Performance information in the budget process: Results of the OECD 2005 Questionnaire'; OECD Journal on Budgeting; Vol. 5, No. 2; pp. 87-131, 200 6. Donath Liliana, Milos M., The prerequisites of public sector performance: governance, culture, efficiency, Infer workshop, Cluj-Napoca, October, 2008
7. Donath Liliana Miloş M., The prerequisites of public sector performance: governance and effectiveness Annals of University of Oradea ISSN1582-5450, 2008, RePec, IDEAS
8. Gerson, P., 'The impact of fiscal policy variables on output growth', IMF Working Paper 98/1(Washington, D.C.: International Monetary Fund), 1998
9. Pereira, M. C. and S. Moreira , 'A stochastic frontier analysis of secondary education output in Portugal', paper presented at the ECB Public Finance Workshop, Frankfurt 6 December 2007.
10. Romero de Avila and R. Strauch , 'Public finances and long-term growth in Europe—Evidence from a panel data analysis', ECB Working Paper No. 246 (Frankfurt: European Central Bank), 2003
11. Smith, P. (1995) 'On the unintended consequences of publishing performance data in the public sector', International Journal of Public Administration, 18(2-3), pp. 277-310.
12. Tanzi, V. and N. Chalk, 'Impact of large public debt on growth in the EU: A discussion of potential channels', in: Buti, M., J. von Hagen and C. Martinez-Mongay (eds.) The behaviour of fiscal authorities. Stabilization, growth and institutions (Palgrave), pp. 186-211, 2002
13. Tanzi, V. and L. Schuknecht , Public spending in the 20th century. A global perspective, (Cambridge University Press)., 2000
14. Verhoeven, M., V. Gunnarsson, and S. Carcillo, 'Education and health in G7 countries: Achieving better outcomes with less spending', IMF Working Paper 07/263 (Washington, D.C.: International Monetary Fund), 2007