Government Consumption, Government Debt and Economic Growth

Shahrzad Ghourchian () and Hakan Yilmazkuday
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Shahrzad Ghourchian: Oklahoma City University

No 2003, Working Papers from Florida International University, Department of Economics

Abstract: This paper compares the effects of government consumption and government debt on economic growth by using data from 83 countries, including both developed and developing markets, over the period between 1960 and 2014. Linear regressions reveal that the negative effects of government consumption are relatively higher than the negative effects of government debt. A nonlinear investigation further suggests that the restrictions on government expenditure to prevent negative growth are shown to be more important for countries with lower trade openness, lower inflation, or higher financial depth, whereas the restrictions on government debt are shown to be more important for countries with higher trade openness, lower inflation or higher financial depth.

Keywords: Government Consumption; Government Debt; Economic Growth; Thresholds; Cross-Country Analysis (search for similar items in EconPapers)
JEL-codes: H50 H63 O23 O47 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2020-02
New Economics Papers: this item is included in nep-fdg, nep-gro and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://economics.fiu.edu/research/pdfs/2020_working_papers/2003.pdf First version, 2020 (application/pdf)

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Journal Article: Government consumption, government debt and economic growth (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:2003

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