Public spending and growth: the role of government accountability

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 citize...

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Main Authors: Morozumi, Atsuyoshi, Viega, Francisco José
Format: Article
Published: Elsevier 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/35140/
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author Morozumi, Atsuyoshi
Viega, Francisco José
author_facet Morozumi, Atsuyoshi
Viega, Francisco José
author_sort Morozumi, Atsuyoshi
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-351402020-05-04T18:01:55Z https://eprints.nottingham.ac.uk/35140/ Public spending and growth: the role of government accountability Morozumi, Atsuyoshi Viega, Francisco José 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. Elsevier 2016-07-12 Article PeerReviewed 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 Public spending; Economic growth; Institutions; Government accountability; Financing method http://www.sciencedirect.com/science/article/pii/S0014292116301192 doi:10.1016/j.euroecorev.2016.07.001 doi:10.1016/j.euroecorev.2016.07.001
spellingShingle Public spending; Economic growth; Institutions; Government accountability; Financing method
Morozumi, Atsuyoshi
Viega, Francisco José
Public spending and growth: the role of government accountability
title Public spending and growth: the role of government accountability
title_full Public spending and growth: the role of government accountability
title_fullStr Public spending and growth: the role of government accountability
title_full_unstemmed Public spending and growth: the role of government accountability
title_short Public spending and growth: the role of government accountability
title_sort public spending and growth: the role of government accountability
topic Public spending; Economic growth; Institutions; Government accountability; Financing method
url https://eprints.nottingham.ac.uk/35140/
https://eprints.nottingham.ac.uk/35140/
https://eprints.nottingham.ac.uk/35140/