The impact of government size on economic growth: a threshold analysis
Research output: Contribution to journal › Article › peer-review
Colleges, School and Institutes
We examine the nature of the relationship between government size and economic growth and identify the optimal level of government size using a large dataset through a novel and very general non-linear panel Generalized Method of Moments approach. We show that this relationship is statistically significant above and below the optimal level, even after splitting our sample to developed and developing countries. Finally, we find an asymmetric impact of government size on economic growth in both developed and developing countries around the estimated threshold.
|Number of pages||4|
|Early online date||29 Dec 2015|
|Publication status||Published - Feb 2016|
- Government size , Economic growth, Dynamic threshold estimation