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Government Expenditures Composition And Growth In Eu15: A Dynamic Heterogeneous Approach

Author

Listed:
  • Lena MALE?EVI? PEROVI?

    (Associate professor University of Split, Faculty of Economics, Business and Tourism, CERGE EI Teaching Fellow Cvite Fiskovi?a 5, 21000 Split, Croatia, Tel: + 385 21 430 683, Fax: + 385 21 430 701)

  • Silvia GOLEM

    (Associate professor University of Split, Faculty of Economics, Business and Tourism, Cvite Fiskovi?a 5, 21000 Split, Croatia, Tel: + 385 21 430 673, Fax: + 385 21 430 701)

Abstract

The goal of this paper is to investigate the long-run effect of government size and composition on growth in EU15 countries during 1995-2014. Unlike previous studies, this paper employs a more adequate and sophisticated econometric technique which allows the joint occurrence of dynamics and parameter heterogeneity as well as addresses the problem of unobserved common factors. The obtained results indicate that high aggregate spending levels are an impediment for growth in developed economies, while the single most important government expenditure item is education. In quantitative terms the impact of education expenditures is, however, significantly lower than that found by other papers.

Suggested Citation

  • Lena MALE?EVI? PEROVI? & Silvia GOLEM, 2019. "Government Expenditures Composition And Growth In Eu15: A Dynamic Heterogeneous Approach," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 95-105, June.
    • Handle: RePEc:hrs:journl:v:xi:y:2019:i:1:p:95-105
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    File URL: http://www.rsijournal.eu/ARTICLES/June_2019/9.pdf
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    Citations

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    Cited by:

    1. Filipos RUXHO & Christos Ap. LADIAS, 2022. "Increasing Funding For The Regional Industry Of Kosovo And The Impact On Economic Growth," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 117-126, June.
    2. Algis KRUPAVICIUS & Ligita SARKUTE & Armand KRASNIQI & Christos Ap. LADIAS, 2024. "Perceived And Desired Images Of Society: How (Un)Equal Is Society?," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 55-70, June.
    3. Filipos RUXHO & Christos Ap. LADIAS, 2022. "The Logistic Drivers As A Powerful Performance Indicator In The Development Of Regional Companies Of Kosovo," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 95-106, June.
    4. 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.

    More about this item

    Keywords

    government size; expenditures composition; GDP growth; heterogeneity; unobserved common effects; EU15;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H1 - Public Economics - - Structure and Scope of Government
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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