Government Expenditure And Economic Growth
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Government Expenditure and Economic Growth
Author | : International Monetary Fund |
Publisher | : International Monetary Fund |
Total Pages | : 30 |
Release | : 1989-05-15 |
Genre | : Business & Economics |
ISBN | : 1451974159 |
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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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