Public spending reallocations and economic growth across different income levels
This paper examines the effects of public spending reallocations on economic growth. Assembling a disaggregated public spending dataset of 83 countries over the 1970-2011 period, we show that spending reallocations towards education, from health and social protection, have significant growth-promoti...
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| Format: | Article |
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Wiley
2017
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| Online Access: | https://eprints.nottingham.ac.uk/35165/ |
| _version_ | 1848795018189340672 |
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| author | Acosta-Ormaechea, Santiago Morozumi, Atsuyoshi |
| author_facet | Acosta-Ormaechea, Santiago Morozumi, Atsuyoshi |
| author_sort | Acosta-Ormaechea, Santiago |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper examines the effects of public spending reallocations on economic growth. Assembling a disaggregated public spending dataset of 83 countries over the 1970-2011 period, we show that spending reallocations towards education, from health and social protection, have significant growth-promoting effects across a wide range of countries' income levels. However, income heterogeneity matters, particularly when reallocations involve infrastructure spending. Specifically, a reallocation from this spending to education also promotes growth, albeit primarily when the income level is low. This occurs because the effects of infrastructure spending are particularly weak in low-income countries, possibly due to the low quality of governance. |
| first_indexed | 2025-11-14T19:25:25Z |
| format | Article |
| id | nottingham-35165 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:25:25Z |
| publishDate | 2017 |
| publisher | Wiley |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-351652020-05-04T19:58:52Z https://eprints.nottingham.ac.uk/35165/ Public spending reallocations and economic growth across different income levels Acosta-Ormaechea, Santiago Morozumi, Atsuyoshi This paper examines the effects of public spending reallocations on economic growth. Assembling a disaggregated public spending dataset of 83 countries over the 1970-2011 period, we show that spending reallocations towards education, from health and social protection, have significant growth-promoting effects across a wide range of countries' income levels. However, income heterogeneity matters, particularly when reallocations involve infrastructure spending. Specifically, a reallocation from this spending to education also promotes growth, albeit primarily when the income level is low. This occurs because the effects of infrastructure spending are particularly weak in low-income countries, possibly due to the low quality of governance. Wiley 2017-01 Article PeerReviewed Acosta-Ormaechea, Santiago and Morozumi, Atsuyoshi (2017) Public spending reallocations and economic growth across different income levels. Economic Inquiry, 55 (1). pp. 98-114. ISSN 1465-7295 Public spending reallocation; Economic growth; Education spending; Infrastructure spending; Income heterogeneity; Governance quality https://onlinelibrary.wiley.com/doi/10.1111/ecin.12382 doi:10.1111/ecin.12382 doi:10.1111/ecin.12382 |
| spellingShingle | Public spending reallocation; Economic growth; Education spending; Infrastructure spending; Income heterogeneity; Governance quality Acosta-Ormaechea, Santiago Morozumi, Atsuyoshi Public spending reallocations and economic growth across different income levels |
| title | Public spending reallocations and economic growth across different income levels |
| title_full | Public spending reallocations and economic growth across different income levels |
| title_fullStr | Public spending reallocations and economic growth across different income levels |
| title_full_unstemmed | Public spending reallocations and economic growth across different income levels |
| title_short | Public spending reallocations and economic growth across different income levels |
| title_sort | public spending reallocations and economic growth across different income levels |
| topic | Public spending reallocation; Economic growth; Education spending; Infrastructure spending; Income heterogeneity; Governance quality |
| url | https://eprints.nottingham.ac.uk/35165/ https://eprints.nottingham.ac.uk/35165/ https://eprints.nottingham.ac.uk/35165/ |