This paper develops a theoretical framework to investigate the relationship between public spending and economic growth, where public spending provides both productive capital and unproductive services. We take into account the quality of bureaucracy with the possibility of rent-seeking motives. A key feature of the model is that it distinguishes between utility enhancing and productivity enhancing public spending. In the absence of rent-seeking motives, the paper demonstrates that public spending will promote economic growth only if marginal productivity of spending is high enough to offset the potential output loss due to increased taxation. In the presence of rent-seeking, however, the impact of public spending on economic growth depends on the quality of bureaucracy and how the latter impinges upon the rentseeking behaviour. The analysis shows that while improvement in bureaucratic quality would unambiguously raise the share of utility enhancing public spending, its impact on economic growth would depend on how bureaucratic quality influences the relative magnitudes of the two types of public spending as well as on how far bureaucratic extraction will be controlled as a result of improvement in bureaucratic quality. Bureaucratic extraction is likely to be minimised with strong institutions and effective monitoring and accountability mechanisms thereby improving the prospects of economic growth. JEL Classification: C61, D23, D61, D73, H50 Keywords: Rent-seeking, Quality of Bureaucracy, Public Goods, Public Expenditures

The need for entrepreneurs for economic development has always been crucial in history because they are the leaders who invent innovative ideas that give spark to economic activities. They are responsible for the combination of factors of production by capital formation, creating employment opportunities, wealth distribution that facilitates development and growth. A well explained definition of entrepreneurship in the words of Wennekers and Thurik (1999) that successfully makes the functional roles of entrepreneurs is: “…the manifest ability and willingness of individuals, on their own, in teams within and outside existing organisations, to perceive and create new economic opportunities (new products, new production methods, new organisational schemes and new product-market combinations) and to introduce their ideas in the market, in the face of uncertainty and other obstacles, by making decisions on location, form and the use of resources and institutions.” (46–47) High and sustained economic growth is the fundamental objective of every developed or developing country’s governmental policy. Economic growth is a long term expansion of the productive potential of the economy. It generates employment in the economy and raises the living standards of the nation. Economic growth promotes business activities in private sector, increases company profits and enhances investor confidence.

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This is a pre-analysis plan specifying the analysis we plan to perform for the evaluation of a training workshop on empathy in Pakistan with deputy ministers on their actual policy outcomes in year 1 and year 2 post-workshop as they perform their official duties. Specifically, we will use government audit documents to investigate spending decisions of ministers across 12 government departments (which represent the universe of their spending choices).Our main hypothesis is that altruism training will increase spending on social policies (i.e. will raise ministers' budgetary recommendations to education and health) and reduce spending on selforiented policies (i.e. budgetary recommendations for personal security and office maintenance). This study experimentally evaluates three methods of cultivating prosocial behaviour (i) UtilitarianValue of Empathy (ii) Malleability of Empathy (iii) Joint Utilitarian and Malleability Treatment (iv) Placebo training.This is an individual level randomised controlled trial with 213 deputy ministers with about 50 ministers per treatment arm and we evaluate impact on ministers' 12 policy outcomes. If we deviate from the methods set out in this document, we will provide clear justifications and wherever possible will also publish pre-plan analysis for comparison.

This is a pre-analysis plan specifying the analysis we plan to perform for the evaluation of a training workshop on empathy in Pakistan with deputy ministers on their actual policy outcomes in year 1 and year 2 post-workshop as they perform their official duties. Specifically, we will use government audit documents to investigate spending decisions of ministers across 12 government departments (which represent the universe of their spending choices).Our main hypothesis is that altruism training will increase spending on social policies (i.e. will raise ministers' budgetary recommendations to education and health) and reduce spending on selforiented policies (i.e. budgetary recommendations for personal security and office maintenance). This study experimentally evaluates three methods of cultivating prosocial behaviour (i) UtilitarianValue of Empathy (ii) Malleability of Empathy (iii) Joint Utilitarian and Malleability Treatment (iv) Placebo training.This is an individual level randomised controlled trial with 213 deputy ministers with about 50 ministers per treatment arm and we evaluate impact on ministers' 12 policy outcomes. If we deviate from the methods set out in this document, we will provide clear justifications and wherever possible will also publish pre-plan analysis for comparison.