Government spending and economic growth in the OECD countries

Research output: Contribution to journalArticle

9 Scopus citations

Abstract

Using panel data from 1995 to 2011 for 34 OECD countries, we examine the effects of government consumption spending, public social spending, and public investment on economic growth. We use a generalized method of moments estimation technique to solve inconsistency problems with fixed effects and random effects panel estimation. We find that an increase in public social spending has a significant negative effect on subsequent economic growth. Government consumption spending and public investment have no significant effect on subsequent economic growth.

Original languageEnglish (US)
Pages (from-to)386-395
Number of pages10
JournalJournal of Economic Policy Reform
Volume19
Issue number4
DOIs
StatePublished - Oct 1 2016

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Keywords

  • economic growth
  • generalized method of moments
  • government consumption spending
  • investment
  • public social spending

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance(all)

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