Government Size and Economic Growth: Time-Series Evidence for the United Kingdom, 1830-1993

Wing Yuk ()
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Wing Yuk: Department of Economics, University of Victoria, https://www.uvic.ca/socialsciences/economics/

No 501, Econometrics Working Papers from Department of Economics, University of Victoria

Abstract: This study considers the long-run relationship between government expenditure and economic growth for the United Kingdom over the period 1830 to 1993. The causality analysis allows for the effects of exports, and for the presence of complex structural breaks in the data. The results support the export-led growth hypothesis. Although support for Wagner’s Law is sensitive to the choice of sample period, there is evidence that GDP growth Granger-causes the share of government spending in GDP indirectly through exports’ share of GDP during the period 1870-1930.

Keywords: Wagner's law; Granger causality; size of government; structural breaks (search for similar items in EconPapers)
JEL-codes: C32 H50 O4 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2005-01-17
New Economics Papers: this item is included in nep-his
Note: ISSN 1485-6441
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:vic:vicewp:0501

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