SPATIAL ANALISIS OF EFFECT OF GOVERNMENT EXPENDITURES ON ECONOMIC GROWTH

Ziba Karjoo () and Majid Sameti ()
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Ziba Karjoo: MA student of economics, Department of Economics, Azad Islamic University, khorasgan Branch Department of Economics, Islamic Azad University, khorasgan Branch, Isfahan, Iran
Majid Sameti: Associated professor of economics, Department of Economics, University of Isfahan Department of Economics, University of Isfahan, Isfahan, Iran

Regional Science Inquiry, 2015, vol. VII, issue 1, 47-54

Abstract: Among the many factors which affect the economic growth of a country, governments are considered to be the most influential stimulants. Due to the importance of studying government expenditure on economic growth, many techniques have been suggested in this regard..In this article we apply a new technique, namely the Spatial Econometrics Method. This method examines "neighborhood" and "location" factors, which are influential in debilitation and reinforcement. Using Ram's growth model (1986) and applying the geographic aspect to global regression models, we attempt to discover the effect of U.S state government expenditures on the economic growth of its states. It was revealed that the growth of each state is influenced by that of its neighboring states and that state government expenditures have no effect on economic growth. In addition, the growth of the labor force is introduced as an influential element affecting state economic growth.

Keywords: Government expenditures; spatial econometrics; geographic weighted regression (search for similar items in EconPapers)
JEL-codes: C31 E62 H72 R12 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hrs:journl:v:vii:y:2015:i:1:p:47-54

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