IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/123748.html
   My bibliography  Save this paper

Productive Public Spending, Knowledge Spillovers and Convergence: A Multi-Country Analysis

Author

Listed:
  • Federico, Antonio Pietro
  • Parello, Carmelo Pierpaolo

Abstract

This paper develops a multi-country AK model of endogenous growth with international knowledge transmission to analyze the impact of productive public expenditure on growth and convergence. A leader economy drives knowledge advancement, while follower countries benefit from spillovers if their knowledge exceeds a threshold. The findings suggest that public expenditure helps laggard followers acquire foreign technology but does not enhance long-term growth. Empirical analysis using a dynamic panel model confirms the threshold effect: public investment boosts growth only in countries far from the technological frontier, while it is ineffective for those at or beyond the threshold.

Suggested Citation

  • Federico, Antonio Pietro & Parello, Carmelo Pierpaolo, 2025. "Productive Public Spending, Knowledge Spillovers and Convergence: A Multi-Country Analysis," MPRA Paper 123748, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:123748
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/123748/1/MPRA_paper_123748.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    AK growth; Knowledge spillovers; Development thresholds; Dynamic heterogeneous panels ; Cross-Sectional dependence.;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:123748. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.