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Public spending and growth: The role of government accountability

Authors

Viega



Abstract

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.

Citation

Morozumi, A., & Viega, F. J. (2016). Public spending and growth: The role of government accountability. European Economic Review, 89, 148-171. https://doi.org/10.1016/j.euroecorev.2016.07.001

Journal Article Type Article
Acceptance Date Jul 1, 2016
Online Publication Date Jul 12, 2016
Publication Date 2016-10
Deposit Date Jul 18, 2016
Publicly Available Date Jul 18, 2016
Journal European Economic Review
Print ISSN 0014-2921
Electronic ISSN 0014-2921
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 89
Pages 148-171
DOI https://doi.org/10.1016/j.euroecorev.2016.07.001
Keywords Public spending; Economic growth; Institutions; Government accountability; Financing method
Public URL https://nottingham-repository.worktribe.com/output/801318
Publisher URL http://www.sciencedirect.com/science/article/pii/S0014292116301192

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nd/4.0





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