Endogenous growth testing in the european union and developing countries : taxation, public expenditure and growth

Download
2003
Derin, Pınar
In endogenous growth models, in contrast to the neoclassical growth models, government expenditure and taxation have an effect on the long run growth rate. In this thesis I examine whether the empirical evidence support the predictions of endogenous growth models or the neoclassical growth models in relation to fiscal policy. For this purpose I use panel data for fifteen European Union (EU) member and thirty-three developing countries between the years 1970 and 1999. I specifically test the following two propositions. The first proposition states that distortionary taxation decreases growth while non-distortionary taxation does not. The second, states that productive government expenditure increases growth while non-productive expenditure does not. The empirical results are quite different between European Union countries and developing countries. The results do not support endogenous growth especially for developing countries.

Suggestions

Disaggregate energy consumption, employment and income in Turkey
Sarı, Ramazan; Soytaş, Uğur (2004-05-01)
The purpose of this paper is to contribute to literature on energy consumption and economic growth relationship by examining how much of the variance in national income growth can be explained by the growth of different sources of energy consumption and employment in Turkey. We use the recently developed generalized forecast error variance decomposition technique of Koop et al. [J. Econom. 74 (1996) 119] and Pesaran and Shin [Econ. Lett. 58 (1998) 17] to determine the information content of the growth rate ...
The Role of Knowledge on Economic Growth: The Case of Turkey, 1963-2010
Utku İsmihan, Fatma M. (Science And Technology Policies Research Center, Middle East Technical University (Ankara, Turkey), 2012)
The importance of knowledge for long-run economic growth has long been an important research area for economists and policy makers. This paper attempts to analyze the impact of knowledge on economic growth in Turkey over the 1963-2010 period, by using a production function approach. In contrast to early studies, which have analyzed the impact of a single dimension of knowledge on economic growth, a knowledge index is constructed to see the impact of various dimensions of knowledge with a single and comprehe...
MILITARY EXPENDITURES, ECONOMIC GROWTH AND SPATIAL SPILLOVERS
YILDIRIM ÖCAL, JÜLİDE; Öcal, Nadir (2016-01-02)
The relationship between economic growth and military expenditure has been the subject of a large literature in defence economics. This study analyses the influence of military expenditures on economic growth in a global perspective for the time period 2000-2010 taking spatial dimension into account. The augmented Solow model is employed to investigate the defence-growth nexus using the cross-sectional data relating to 128 countries. Following a traditional regression analysis, spatial variations in the rel...
Demand following or supply leading? A panel data analysis for developed, developing, and less developed countries
Akıncı, Gönül Yüce; Akıncı, Merter; Yılmaz, Ömer (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2013-12-1)
In this paper, the linkages between financial development and economic growth in developed, developing and less developed countries are investigated using unbalanced panel cointegration and causality analysis in the period of 1980 – 2011. The results of the Pedroni cointegration analysis show the existence of cointegration relations between financial development and economic growth for whole country groups, but Kao cointegration analysis indicates the long – run relationship between the related variables fo...
Energy consumption, economic growth, and carbon emissions: Challenges faced by an EU candidate member
Soytaş, Uğur; Sarı, Ramazan (2009-04-15)
This paper investigates the long run Granger causality relationship between economic growth, carbon dioxide emissions and energy consumption in Turkey, controlling for gross fixed capital formation and labor. The most interesting result is that carbon emissions seem to Granger cause energy consumption, but the reverse is not true. The lack of a long run causal link between income and emissions may be implying that to reduce carbon emissions, Turkey does not have to forgo economic growth.
Citation Formats
P. Derin, “Endogenous growth testing in the european union and developing countries : taxation, public expenditure and growth,” M.S. - Master of Science, Middle East Technical University, 2003.