Yamamura, Eiji (2010): Decomposition of the effect of government size on growth.
Download (122kB) | Preview
Empirical results through a fixed effects regression model show that government size has a negative effect on growth mainly through hampering capital accumulation. When a sample is divided into OECD and non-OECD countries, the negative effect of government size on capital accumulation persists for non-OECD countries but not for OECD countries.
|Item Type:||MPRA Paper|
|Original Title:||Decomposition of the effect of government size on growth|
|Keywords:||Government size, Efficiency improvement, Capital accumulation, Fixed effects|
|Subjects:||H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth
|Depositing User:||eiji yamamura|
|Date Deposited:||19. Jul 2010 13:40|
|Last Modified:||16. Feb 2013 03:49|
Bairam, E., 1990. Government size and economic growth: the African experience, 1960-1985. Appl. Econ. 22, 1427-1435.
Baltagi, B. H., 2005. Econometric Analysis of Panel Data. John Wiley and Sons, West Sussex.
Barro, R.J. 1997. Determinants of Economic Growth: a Cross-country Empirical Study. MIT Press, Cambridge.
Chen, S.T., Lee, C.C., 2005. Government size and economic growth in Taiwan: a threshold regression approach. J. Policy Model. 27, 1051-1066.
Easterly, W., Rebelo, S., 1993. Fiscal policy and economic growth: an empirical investigation. J. Monet. Econ. 32, 417-438.
Fölster, S., Herekson, M., 2001. Growth effects of government expenditure and taxation in rich countries. Europ, Econ. Rev. 45, 1501-1520.
Grossman, P.J. 1988. Government and economic growth: a non-linear relationship. Public Choice 56, 193-200.
Henderson, J.D., Russell, R.R., 2005. Human capital and convergence: a production-frontier approach. Int. Econ. Rev. 46, 1167-1205.
Kumar, S., Russell, R.R., 2002. Technological change, technological catch-up, and capital deepening: relative contributions to growth and convergence. Amer. Econ. Rev. 92, 527-548.
Landau, D. 1985. Government expenditure and economic growth in the developed countries: 1952-76. Public Choice 47, 459-477.
Lopez, H., 2006. Growth and inequality: are the 1990s different? Econ. Letters 93, 18-25.
Lucas, R., 1988. On the mechanics of economic development. J. Monet. Econ. 22, 3-42.
Mendoza, E.G., Milesi-Ferretti, G.M., Asea, P., 1997. On the ineffectiveness of tax policy in altering long-run growth: Harberger’s superneutrality conjecture. J. Public Econ. 66, 99-126.
Peden, E.G., Bradley, M.D., 1989. Government size, productivity, and economic growth: the postwar experience. Public Choice 61, 229-245.
Ram, R., 1986. Government size and economic growth: a new framework and some evidence from cross-section and time-series data. Amer. Econ. Rev. 76, 191-203.
World Bank, 2006. World Development Indicators, CD-ROM, World Bank, Washington, D.C.
Yamamura, E., Shin, E., 2007. Technological change and catch-up and capital deepening: relative contributions to growth and convergence: Econ. Bull., 15(3), 1-8.
Yamamura, E., Shin, E., 2008. The benefit of efficiency improvement on growth and convergence: a study using Japan panel data. Econ. Letters 99, 209-211.