Public spending and growth: the role of government accountability

Morozumi, Atsuyoshi and Viega, Francisco José (2016) Public spending and growth: the role of government accountability. European Economic Review, 89 . pp. 148-171. ISSN 0014-2921

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This paper examines the role of institutions in the nexus between public spending and economic growth. Empirical results based on a newly assembled dataset of 80 countries over the 1970-2010 period suggest that particularly when institutions prompt governments to be accountable to the general citizen does public capital spending promote growth. Taking account of the type of financing for this spending, we show that the growth promoting effect under an accountable government appears to prevail for various financing sources, including a reallocation from current spending, an increase in revenue, and a rise in the budget deficit. However, government accountability does not seem to play a key role in the growth effects of current spending.

Item Type: Article
Keywords: Public spending; Economic growth; Institutions; Government accountability; Financing method
Schools/Departments: University of Nottingham UK Campus > Faculty of Social Sciences > School of Economics
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Depositing User: Eprints, Support
Date Deposited: 18 Jul 2016 13:24
Last Modified: 14 Sep 2016 21:47

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