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Spatial Analisis Of Effect Of Government Expenditures On Economic Growth

Author

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  • Ziba KARJOO

    (MA student of economics, Department of Economics, Azad Islamic University, khorasgan Branch Department of Economics, Islamic Azad University, khorasgan Branch, Isfahan, Iran)

  • Majid SAMETI

    (Associated professor of economics, Department of Economics, University of Isfahan Department of Economics, University of Isfahan, Isfahan, Iran)

Abstract

Among the many factors which affect the economic growth of a country, governments are considered to be the most influential stimulants. Due to the importance of studying government expenditure on economic growth, many techniques have been suggested in this regard..In this article we apply a new technique, namely the Spatial Econometrics Method. This method examines "neighborhood" and "location" factors, which are influential in debilitation and reinforcement. Using Ram's growth model (1986) and applying the geographic aspect to global regression models, we attempt to discover the effect of U.S state government expenditures on the economic growth of its states. It was revealed that the growth of each state is influenced by that of its neighboring states and that state government expenditures have no effect on economic growth. In addition, the growth of the labor force is introduced as an influential element affecting state economic growth.

Suggested Citation

  • Ziba KARJOO & Majid SAMETI, 2015. "Spatial Analisis Of Effect Of Government Expenditures On Economic Growth," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 47-54, June.
    • Handle: RePEc:hrs:journl:v:vii:y:2015:i:1:p:47-54
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    References listed on IDEAS

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    1. Kormendi, Roger C. & Meguire, Philip G., 1985. "Macroeconomic determinants of growth: Cross-country evidence," Journal of Monetary Economics, Elsevier, vol. 16(2), pages 141-163, September.
    2. Atrayee Ghosh Roy, 2009. "Evidence on economic growth and government size," Applied Economics, Taylor & Francis Journals, vol. 41(5), pages 607-614.
    3. Ram, Rati, 1986. "Government Size and Economic Growth: A New Framework and Some Evidencefrom Cross-Section and Time-Series Data," American Economic Review, American Economic Association, vol. 76(1), pages 191-203, March.
    4. Fischer, Manfred M. & Stirböck, Claudia, 2004. "Regional Income Convergence in the Enlarged Europe, 1995-2000: A Spatial Econometric Perspective," ZEW Discussion Papers 04-42, ZEW - Leibniz Centre for European Economic Research.
    5. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Veacheslav SHEBANIN & Iurii KORMYSHKIN & Alona KLIUCHNYK & Iryna ALLAKHVERDIYEVA & Valentyna UMANSKA, 2022. "Tools Of Formation Of The System Of Socio-Economic Security Of Territorial Communities Of The Region," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 127-136, June.

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    More about this item

    Keywords

    Government expenditures; spatial econometrics; geographic weighted regression;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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