The efficiency of government finanical expenditures before and during the COVID-19 pandemic: A cross-country investigation

Huong Vu Van, Le Van Dao, Lich Khac Hoang and Ngo Van Hien

Finance Research Letters, 2023, vol. 54, issue C

Abstract: This paper examines the way government spending affected productivity and its decomposition before and during the COVID-19 outbreak. Using panel data from 158 economies, the research shows that spending on health care increases productivity, while spending on the military slows down productivity and its decompositions. These effects are even greater in the context of COVID-19, showing that spending on health care and avoiding conflict and military escalation will be important for future economies to grow in a sustainable way.

Keywords: Stochastic Frontier Analysis (SFA); Government financial expenditure; Total factor productivity (TFP) (search for similar items in EconPapers)
JEL-codes: D24 H51 I18 R15 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612323000715
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:54:y:2023:i:c:s1544612323000715

DOI: 10.1016/j.frl.2023.103697

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().