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Does Economic Performance Correlate with Big Government?*

* This paper is a replication of an original study

Author

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  • Peter Gordon
  • Lanlan Wang

Abstract

Development is a systematic and evolutionary process, which is not limited to the improvement of economic performance per se. Institutions that support economic freedom and governments that may or may not support development and freedom probably evolve together. A recent study by La Porta et al (1999) examines these relationships and finds, among other things, that there is a positive link between big government and economic development. We reexamine these links with international cross-sectional data for five periods and find that economic freedom and development do reinforce each other but that the size and scope of government does not play a strong role.

Suggested Citation

  • Peter Gordon & Lanlan Wang, 2004. "Does Economic Performance Correlate with Big Government?," Econ Journal Watch, Econ Journal Watch, vol. 1(2), pages 192-221, August.
    • Handle: RePEc:ejw:journl:v:1:y:2004:i:2:p:192-221
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    References listed on IDEAS

    as
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    Cited by:

    1. Maren Duvendack & Richard W. Palmer-Jones & W. Robert Reed, 2015. "Replications in Economics: A Progress Report," Econ Journal Watch, Econ Journal Watch, vol. 12(2), pages 164–191-1, May.
    2. Andreas Bergh & Magnus Henrekson, 2011. "Government Size And Growth: A Survey And Interpretation Of The Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 872-897, December.
    3. Peter Kurrild-Klitgaard, 2004. "The Political Economy of the Dynamic Nature of Government Intervention: An Introduction to Potentials and Problems," Advances in Austrian Economics, in: The Dynamics of Intervention: Regulation and Redistribution in the Mixed Economy, pages 3-20, Emerald Group Publishing Limited.
    4. Andreas Bergh, 2006. "Is the Swedish Welfare State A Free Lunch?," Econ Journal Watch, Econ Journal Watch, vol. 3(2), pages 210-235, May.
    5. Peter H. Lindert, 2006. "The Welfare State Is the Wrong Target: A Reply to Bergh," Econ Journal Watch, Econ Journal Watch, vol. 3(2), pages 236-250, May.

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    Replication

    This item is a replication of:
  • La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.

    • More about this item

    Keywords

    Economic development; property rights; political and institutional change;
    All these keywords.

    JEL classification:

    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P17 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Performance and Prospects

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Does Economic Performance Correlate with Big Government? (EJW 2004) in ReplicationWiki

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