Decomposition of the effect of government size on growth

Yamamura, Eiji (2010): Decomposition of the effect of government size on growth.

Abstract

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
• Language: English
• 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, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth

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