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Government Size And Regional Economic Growth:Another Look

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  • Bruce R. Domazlicky

    (Southeast Missouri State University)

Abstract

A production function approach is used to explore the effect of government size on economic growth in the forty-eight contiguous states during the period 1977-89. Following Durden and Elledge, government employment is used as the measure of government size. The results indicate that the growth rate of gross state product (GSP) is not related to government size and the growth rate of per capita GSP is negatively related to government size. The conclusion is that there is little evidence of a positive effect of government size on regional economic growth.

Suggested Citation

  • Bruce R. Domazlicky, 1996. "Government Size And Regional Economic Growth:Another Look," The Review of Regional Studies, Southern Regional Science Association, vol. 26(1), pages 89-97, Summer.
    • Handle: RePEc:rre:publsh:v:27:y:1996:i:1:p:89-97
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    References listed on IDEAS

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    1. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    2. 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.
    3. Garey Durden & Barry Elledge, 1993. "The Effect Of Government Size On Economic Growth: Evidence From Gross State Product Data," The Review of Regional Studies, Southern Regional Science Association, vol. 23(2), pages 183-190, Fall.
    4. Landau, Daniel, 1986. "Government and Economic Growth in the Less Developed Countries: An Empirical Study for 1960-1980," Economic Development and Cultural Change, University of Chicago Press, vol. 35(1), pages 35-75, October.
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    Cited by:

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