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 b...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2009/03/10536777/marriage-between-public-spending-growth-else-know http://hdl.handle.net/10986/11126 |
| Summary: | 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. |
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