Government size and growth: Accounting for economic freedom and globalization

Bergh, Andreas; Karlsson, Martin

doi:10.1007/s11127-009-9484-1

Cited by 212 publications

(113 citation statements)

References 28 publications

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“…In addition to Fölster and Henrekson (2001), papers by Dar and AmirKhalkhali (2002), Romero-Avila and Strauch (2008), Bergh and Karlsson (2010) and Afonso and Furceri (2010) all find a statistically and economically significant negative correlation between aggregate government size and growth in rich countries. The omission of the latter two can of course be explained by them being published later, but the main impression is nevertheless that Colombier is not fully accurate in his description of existing literature.…”

Section: Related Literaturementioning

confidence: 95%

Growth Effects of Fiscal Policies: A Critical Appraisal of Colombier’s (2009) Study

Bergh

Öhrn

2011

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: In a recent paper, Colombier (2009) uses a robust estimation technique and claims to find empirical evidence that government size has not been detrimental to growth for OECD countries during the 1970 to 2001 period, and that endogenous growth theory is not corroborated. We examine the robustness of these findings, and show that Colombier's results differ from those in other recent papers not because of the estimator used, but because of the exclusion of other control variables. Adding time fixed effects to Colombier's data set, and using the same econometric method, we obtain results in line with other findings, corroborating endogenous growth theory. Adding further control variables illustrates the robustness of the negative correlation between total tax revenue and economic growth for both instrumented and noninstrumented regressions. Terms of use: Documents in EconStor mayJEL classification: E62, H11, H20, O43

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Section: Related Literaturementioning

confidence: 95%

Growth Effects of Fiscal Policies: A Critical Appraisal of Colombier’s (2009) Study

Bergh

Öhrn

2011

SSRN Journal

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“…When substituting the equations (7), (8) and (9) to the production function and taking the natural log, the following equation of per capita income is obtained: The model (10) does not provide a deep understanding of the economic growth. There are several other factors that can have an effect on the economic growth of a country.…”

Section: H(t)= S H Y(t) -(N + ώ+ δ H) H (T)mentioning

confidence: 99%

Impact of government size and corruption on economic growth

Baklouti

Boujelbène

2016

IJAES

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This paper examines the role of government in economic growth by extending the neoclassical production-function by incorporating two dimensions of government such as, the size and quality. The size is measured by general government final consumption expenditures. The quality of governance is measured by the index of perception of corruption which is being tested in 12 countries in the MENA region in the period between 1998 and 2011. Our empirical results indicate that when the public sector is "too big", economic growth is negatively affected and that the relationship between corruption and economic growth is significantly negative with the bad effects of this phenomenon that include a loss of revenue for the state in the benefit of the individual, the increased costs related to the conduct of the affairs of the state, an inefficient use of public spending and stifling economic growth in the region. We argued then, that investments in the capacity which strengthened governance are a priority for improving the growth of the countries examined.

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“…On the revenue side, indirect taxes and social contributions have a negative and statistically significant effect on growth. Also, Bergh and Karlsson (2010) find that big government negatively correlates with economic development. Their empirical investigation is pursued for OECD countries in two periods, i.e.…”

Section: Discussionmentioning

confidence: 95%

Judges as Fiscal Activists: Can Constitutional Review Shape Public Finance?

Kantorowicz

2014

Danube

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The judicialization of politics, or alternatively, politization of the judiciary has been much discussed over the last twenty years. Despite this, the way judges influence fiscal policy outcomes remains, to a large extent, unexplored. This paper attempts, at least partially, to fill this research gap. A judicial (constitutional) review constitutes the central element of the current analysis since it is considered as a key institutional device through which Constitutional (Supreme) Courts intervene in politics, including public finance. Specifically, this paper seeks to investigate empirically whether there is any systematic pattern according to which judges executing judicial review shape fiscal outcomes. The conceptual framework is based on the strategic interaction model and the assumption that the Constitutional Courts reflect public opinion (i.e. the Court as a majoritarian institution). Some preliminary results for a panel of 24 EU countries in the period 1995-2005 suggest that a strong judicial review correlates with a smaller size of government, measured as government income to GDP.

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Government size and growth: Accounting for economic freedom and globalization

Abstract: Government size, Growth, Economic freedom, Globalization, Taxes,

Cited by 212 publications

References 28 publications

Growth Effects of Fiscal Policies: A Critical Appraisal of Colombier’s (2009) Study

Growth Effects of Fiscal Policies: A Critical Appraisal of Colombier’s (2009) Study

Impact of government size and corruption on economic growth

Judges as Fiscal Activists: Can Constitutional Review Shape Public Finance?

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