Economic Growth and Government Size in OECD Countries: New Evidence from the Quantile Regression Approach

Sheng-Tung Chen (), Chi-Chung Chen () and Yoonbai Kim ()
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Sheng-Tung Chen: Assistant Professor, Department of Public Finance, Feng Chia University
Chi-Chung Chen: Professor, Department of Applied Economics, National Chung-Hsing University
Authors registered in the RePEc Author Service: Sheng Tung Chen ()

Economics Bulletin, 2011, vol. 31, issue 1, 416-425

Abstract: The purpose of this paper is to employ the quantile regression methodology to investigate the relationship between government size and economic growth using a panel data set for 24 OECD countries. We find that the magnitude of the effect of government size on economic growth varies through the quantiles. When the economic growth is low, increasing the size of the government may have a positive effect and stimulate economic growth. However, as the economic growth rate increases, such an effect declines and has a negative effect on economic growth.

Keywords: Economic growth; Government size; Quantile regression (search for similar items in EconPapers)
JEL-codes: E6 O4 (search for similar items in EconPapers)
Date: 2011-01-24
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Citations: View citations in EconPapers (4)

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Journal Article: Economic growth and government size in oecd countries: new evidence from the quantile regression approach (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-10-00507

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