On the Marriage Between Public Spending and Growth : What Else Do We Know?

While there are strong theoretical arguments for ways in which public spending influences growth, robust empirical links have been difficult to establish. More recently, many of the methodological problems that plagued the earlier literature have been overcome and interesting policy lessons drawn. The number of studies of developing countries using these new approaches is still limited, due to data scarcity and other comparability issues, but overall findings from the new literature are relevant for developing country policy makers and also open new venues for future research. The objective of this note is to present these new empirical results together with the methodological improvements that support them, and to outline some of the issues that need deeper analysis and empirical study, particularly in developing countries.

Bibliographic Details

Main Author:	Moreno-Dodson, Blanca
Language:	English
Published:	World Bank, Washington, DC 2009-03
Subjects:	ACCOUNTING, ACCOUNTING FRAMEWORK, ALLOCATION, BOND, BUDGET ALLOCATIONS, BUDGET BALANCE, BUDGET CONSTRAINT, BUDGET IMPLEMENTATION, BUDGET SIZE, BUSINESS CYCLE, CAPITAL ACCUMULATION, CAPITAL EXPENDITURE, CAPITAL EXPENDITURES, CAPITAL SPENDING, CAPITAL STOCK, CAPITAL STOCKS, CENTRAL BANK, CLASSIFICATION OF EXPENDITURES, COMPOSITION OF PUBLIC SPENDING, COUNTRY INITIAL, COUNTRY REGRESSIONS, CREATIVE ACCOUNTING, CROSS-COUNTRY ANALYSIS, DATA ANALYSIS, DATA AVAILABILITY, DESCRIPTIVE STATISTICS, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT ECONOMICS, DEVELOPMENT INDICATORS, DYNAMIC PANEL, ECONOMIC AFFAIRS, ECONOMIC DEVELOPMENT, ECONOMIC FLUCTUATIONS, ECONOMIC GROWTH, ECONOMIC POLICY, ECONOMIC STUDIES, EMERGING MARKETS, EMPIRICAL LITERATURE, EMPIRICAL RESULTS, EMPIRICAL STUDIES, EMPLOYMENT EQUATIONS, EXPENDITURE CLASSIFICATION, EXPENDITURE DECISIONS, EXPENDITURE FUNCTIONS, EXPENDITURE TRACKING SURVEYS, EXPENDITURES ON HEALTH, FINANCIAL STATISTICS, FISCAL BUDGET, FISCAL DEFICITS, FISCAL DISCIPLINE, FISCAL POLICIES, FISCAL POLICY, FISCAL PRUDENCE, FISCAL REFORMS, FISCAL RULES, GOLDEN RULE, GOVERNMENT BUDGET, GOVERNMENT BUDGET CONSTRAINT, GOVERNMENT EXPENDITURE, GOVERNMENT EXPENDITURES, GOVERNMENT FINANCING, GOVERNMENT SAVINGS, GOVERNMENT SPENDING, GROWTH CONTEXT, GROWTH EFFECT, GROWTH IMPACT, GROWTH MODEL, GROWTH RATE, HEALTH CARE, HOUSING, HUMAN CAPITAL, HUMAN DEVELOPMENT, INDEPENDENT VARIABLES, INFLATION, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE INVESTMENTS, INTEREST RATES, INVESTMENT SPENDING, LAGGED VALUES, LEVELS OF PUBLIC SPENDING, LONG RUN, LONG-RUN GROWTH, LONG-RUN IMPACT, LOW INFLATION, MACROECONOMIC UNCERTAINTY, MAINTENANCE OF ROADS, MONETARY ECONOMICS, NEGATIVE IMPACT, NET CAPITAL, NET DEBT, PANEL REGRESSIONS, PER CAPITA GROWTH, POLICY IMPLICATIONS, POLICY ISSUES, POLICY MAKERS, POLICY RESEARCH, POLITICAL CONSIDERATIONS, POLITICAL ECONOMY, POSITIVE COEFFICIENT, POSITIVE IMPACTS, POVERTY REDUCTION, PRIVATE INVESTMENT, PUBLIC, PUBLIC CAPITAL, PUBLIC CONSUMPTION, PUBLIC DEBT, PUBLIC ECONOMICS, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE TRACKING, PUBLIC EXPENDITURES, PUBLIC FINANCES, PUBLIC FUNDS, PUBLIC INFRASTRUCTURE, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC SECTOR, PUBLIC SECTOR EFFICIENCY, PUBLIC SERVICES, PUBLIC SPENDING, RATIO OF PUBLIC SPENDING, ROADS, SAVINGS, SIGNIFICANT EFFECT, SIGNIFICANT IMPACT, SOCIAL INFRASTRUCTURE, SOCIAL SECURITY, SOCIAL SECURITY CONTRIBUTIONS, TAXATION, TOTAL PUBLIC SPENDING, UNCERTAINTY,
Online Access:	http://documents.worldbank.org/curated/en/2009/03/10536777/marriage-between-public-spending-growth-else-know https://hdl.handle.net/10986/11126
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