The Economic Consequences of Government Spending in South Korea

Myeong Hwan Kim (), Yongseung Han (), Heather Tierney () and Eréndira Yareth Vargas López ()
Additional contact information
Myeong Hwan Kim: Purdue University Fort Wayne
Heather Tierney: Purdue University Fort Wayne
Eréndira Yareth Vargas López: University of Colima

Economics Bulletin, 2020, vol. 40, issue 1, 308-315

Abstract: This paper sheds light on the relationship between government expenditures and economic growth for South Korea. Using annual data from 1953 to 2016, this paper does find there to be an inverted U-shaped relationship between government expenditures and the growth rate of real GDP and between private expenditures and the growth rate of real GDP for South Korea. This study shows that there is an optimal level of government expenditure ratio, private expenditure ratio, and total expenditure ratio, which promotes economic growth for South Korea, but there is a decline in economic growth once this optimal level is reached.

Keywords: Rahn Curve; Wagner's Law; Public Spending; Public Expenditure; Economic Growth (search for similar items in EconPapers)
JEL-codes: H1 O4 (search for similar items in EconPapers)
Date: 2020-02-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I1-P28.pdf (application/pdf)

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:ebl:ecbull:eb-19-00552

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().