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Decomposition of the effect of government size on growth

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  • Yamamura, Eiji

Abstract

Empirical results through a fixed effects regression model show that government size has a negative effect on growth mainly through hampering capital accumulation. When a sample is divided into OECD and non-OECD countries, the negative effect of government size on capital accumulation persists for non-OECD countries but not for OECD countries.

Suggested Citation

  • Yamamura, Eiji, 2010. "Decomposition of the effect of government size on growth," MPRA Paper 23972, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:23972
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    References listed on IDEAS

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    Cited by:

    1. Eiji Yamamura, 2013. "Institution and decomposition of natural disaster impact on growth," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 40(6), pages 720-738, October.
    2. Antonio Afonso & Hüseyin Sen & Ayse Kaya, 2021. "Government Size, Unemployment and Inflation Nexus in Eight Large Emerging Market Economies," Hacienda Pública Española / Review of Public Economics, IEF, vol. 235(1), pages 133-170, March.
    3. Bogdan-Gabriel ZUGRAVU & Anca-Stefania SAVA, 2014. "The Composition Of Public Expenditures On Economic Affairs In Cee Countries And Its Impact On Economic Growth," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 0(Special i), pages 96-102, September.
    4. Eiji Yamamura & Inyong Shin, 2013. "Decomposition of Ethnic Heterogeneity on Growth," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 55(1), pages 59-75, March.
    5. Petar Stankov, 2017. "Economic Freedom and Welfare Before and After the Crisis," Springer Books, Springer, number 978-3-319-62497-6, December.
    6. Yamamura, Eiji, 2012. "Effects of groups and government size on information disclosure," MPRA Paper 36141, University Library of Munich, Germany.

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    More about this item

    Keywords

    Government size; Efficiency improvement; Capital accumulation; Fixed effects;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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