Kiel Working Papers, Kiel Institute for World Economics
No 1034:
The Scope of Government and its Impact on Economic Growth in OECD Countries
Bernhard Heitger
Abstract: This paper investigates the relationship between the size
of government and economic growth in OECD countries in 19602000. The
underlying idea is that government expenditures on public goods basically
have a positive effect on growth, but this growth effect tends to decline
or even reverse when government is overdoing, e.g. by increasing
expenditures in such a way that it ultimately also provides private goods.
Empirical analyses based on panel estimates for 21 OECD countries support
this hypothesis: Total government expenditures as well as expenditures by
type indicate a significant negative impact on economic growth (excepting
transfers and public investments).
Keywords: Government expenditure, taxation and economic growth; (follow links to similar papers)
JEL-Codes: H1; H2; O4; (follow links to similar papers)
32 pages, April 2001
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
kap1034.pdf
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom