Government Expenditure and Economic Growth

Released on by International Monetary Fund
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  • Government Expenditure and Economic Growth Book Detail

  • Author : International Monetary Fund
  • Release Date : 1989-05-15
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 30
  • ISBN 13 : 1451974159
  • File Size : 22,22 MB
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Government Expenditure and Economic Growth by International Monetary Fund PDF Summary

Book Description: This paper examines the empirical evidence on the contribution that government and, in particular, capital expenditure make to the growth performance of a sample of developing countries. Using the Denison growth accounting approach, this study finds that social expenditures may have a significant impact on growth in the short run, but infrastructure expenditures may have little influence. While current expenditures for directly productive purposes may exert a positive influence, capital expenditure in these sectors appears to exert a negative influence. Experiments with other explanatory variables confirm the importance of the growth of exports to the overall growth rate.

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