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The Role of Public Finance in Economic Development: An Empirical Investigation

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  • Peter Smith

    (Department of Economics, University of Southampton)

  • Jackline Wahba

Abstract

This paper focuses on the role of government finance in economic development. The effects of various kinds of public spending and revenue (mainly taxes) are examined. An empirical investigation of 56 developing countries is used to assess this role of the government and to evaluate whether it is facilitating or hindering the process of economic development. The findings suggest that government finance has played a positive role, refuting the conclusion advanced by some economists that there has been a government failure in development.

Suggested Citation

  • Peter Smith & Jackline Wahba, 1995. "The Role of Public Finance in Economic Development: An Empirical Investigation," Working Papers 9508, Economic Research Forum, revised 04 1995.
    • Handle: RePEc:erg:wpaper:9508
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