Government expenditures and economic growth in developing countries: Evidence from a panel data analysis

Download

M0000607.pdf

Date

2002

Author

Günalp, Burak
Gür, Timur Han

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

396
views

412
downloads

This paper re-estimates the two-sector growth model of Ram (1986), “Government Size and Economic Growth: A New Framework and Some Evidence from Cross-Section and Time-Series Data”, American Economic Review, 7(1), 191-203, by employing panel data techniques and using a more recent data set for thirtyfour developing countries. The estimation results confirm the cross-sectional findings of Ram: Government size is positively associated with the economic growth and economic performance of developing countries. The total effect of government size on economic growth is positive and quite large. In addition, the marginal externality effect of government size on non-government output is positive. Another finding of the study is that the country effects estimated for the models of Ram are positive for most of the Asian countries in the sample and negative for most of the Latin American and African countries.

URI

http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/14
https://hdl.handle.net/11511/92166

Journal

ODTÜ Gelişme Dergisi

Collections

Department of Political Science and Public Administration, Article

Suggestions

OpenMETU
Core

Does Information and Communication Technology Sustain Economic Growth? The Underdeveloped and Developing Countries Case Erdil, Erkan; Türkcan, Burcu (IGI-Global, 2010-01-01) This paper tests the impact of ICT on economic growth for underdeveloped and developing countries by using a panel dataset for the period of 1995-2006. We first develop the theory of the relationship between ICT and economic growth. We show that ICT-capital has a positive effect both on long-run and transitional income per capita, if it is considered as a factor of production. Next, we estimate a panel data set with 131 underdeveloped and developing countries under the assumption that ICT is one of the dete...
Public debt and growth: an empirical investigation Canbek, Duygu; Özmen, Erdal; Department of Economics (2014) We investigate the relationship between public debt and growth for a panel sample of 128 countries including 26 advanced, 40 emerging and 62 developing economies for a period of 1960-2011. To this end, we consider not only the conventional fixed effects procedure but also the recently developed cross sectionally augmented distributed lag (CS-DL) mean group (MG) procedure. We also investigate whether the relationship is robust to different country groupings such as advanced, emerging and developing economies...
Real Exchange Rates and Growth: Contractionary Depreciations or Appreciations? Özmen, Erdal; YOLCU KARADAM, DUYGU (2021-01-01) This study investigates the impact of real exchange rates (RER) on growth of a large number of advanced (AE) and developing economies (DE) estimating conventional growth models augmented with global financial conditions variables. First of all, replicating Rodrik (2008) and following studies employing panel autoregressive distributed lag (PARDL) and PARDL mean group (PARDL-MG) models, we show that the expansionary depreciation findings for DE are often based on a misinterpretation of an error correction mec...
Non-linear programming models for sector and policy analysis Bauer, Siegfried; Kasnakoglu, Haluk (Elsevier BV, 1990-7) This paper examines the basic problems of the mathematical programming models used for agricultural sector and policy analysis. Experience with traditional programming models shows that a considerable improvement in performance is possible by adequately incorporating non-linear relationships. Particular emphasis will be given to the calibration and validation problems involved in this type of model. With the help of the Turkish agricultural sector model it will be demonstrated that an empirical specificatio...
Nonlinear models, composite longer leading indicator and forecasts for UK real GDP Ocal, N (Informa UK Limited, 2006-05-20) This paper examines the role of the Office for National Statistics Composite Longer Leading Indicator, in nonlinear business cycle models for growth rates of UK real gross domestic product (GDP). These models are of the smooth transition regression class, with the transition between "regimes'' expressed as functions of lagged changes in the leading indicator. In general, evidence is found of business cycle regime asymmetries, with increases and decreases in the leading indicator implying distinct responses ...

Citation Formats

B. Günalp and T. H. Gür, “Government expenditures and economic growth in developing countries: Evidence from a panel data analysis,” ODTÜ Gelişme Dergisi, vol. 29, no. 2, pp. 311–332, 2002, Accessed: 00, 2021. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/14.