Public Expenditure and Economic Growth: Further Evidence for the European Union

Simon Sosvilla-Rivero, María del Carmen Ramos-Herrera () and Juan J. Rubio-Guerrero
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María del Carmen Ramos-Herrera: Department of Economics, Universidad deAlcalá, 28801 Alcalá de Henares, Madrid, Spain
Juan J. Rubio-Guerrero: Department of Applied Economics, Universidad Castilla-La Mancha, 02071 Ciudad Real, Castilla-La Mancha, Spain

Economies, 2025, vol. 13, issue 3, 1-25

Abstract: This paper empirically investigates the short- and long-term impact of public expenditure on economic growth. We use annual data from 28 European Union (EU) countries for the 1995–2022 period and estimate a growth model augmented for public expenditure employing the Autoregressive Distributed Lag (ARDL) panel data approach. Our results support the view that different categories of public expenditures have dissimilar long- and short-term effects on the economic performance of EU countries.

Keywords: public expenditure; economic growth; ARDL data panel methods; productive and unproductive expenditure; European Union countries (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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