Government size and economic growth in emerging market economies: a panel co-integration approach
- 1 March 2013
- journal article
- research article
- Published by Taylor & Francis Ltd in Macroeconomics and Finance in Emerging Market Economies
- Vol. 6 (1), 14-38
- https://doi.org/10.1080/17520843.2012.697075
Abstract
A significant positive influence of both government size and domestic investment on economic growth is found in the long run during 1970–2006 for a sample of 19 emerging market economies, employing panel co-integration testing and estimating the parameters using dynamic ordinary least square method, for all the indicators, excepting the case when one chooses general government final consumption expenditure as a percentage of GDP a measure of government size and gross capital formation as a percentage of GDP a measure of domestic investment, with per capita GDP a proxy for economic growth. The findings corroborate the argument that diverse results of the earlier studies are due to different measures adopted.Keywords
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