Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

4

Publisher

Utah State University Department of Economics

Publication Date

1998

First Page

1

Last Page

39

Abstract

This paper examines the effect of government size, measured by the ratio of government consumption expenditures to gross domestic product, GDP, on the rate of growth of per capita GDP. Our sample includes 30 low-income and middle-income developing countries over the period 1970-90. We use a panel data approach to avoid the shortcomings of the cross-country models often used in such an analysis. The results indicate government size has a highly significant negative influence on the rate of economic growth. /



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