Does Composition of Government Spending Matter to Economic Growth?

This paper assesses the impact of the composition of government spending on economic growth in developing countries. We use a dynamic GMM model and a panel data set for 44 developing countries between 1980 and 2004. We find that the various types of government spending have different impact on economic growth. In Africa, human capital spending contributes to economic growth whereas in Asia, capital formation, agriculture and education has strong growth promoting effect. In Latin America, none of government spending items has significant impact on economic growth. Our results are robust regardless of model specifications and instruments chosen.


Issue Date:
2009
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/51684
JEL Codes:
H5; O1; C232
Series Statement:
Contributed Paper
120




 Record created 2017-04-01, last modified 2017-08-25

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)