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The composition of government expenditures and economic growth in Bolivia

Antonio Bojanic ()

Latin American Journal of Economics-formerly Cuadernos de Economía, 2013, vol. 50, issue 1, 83-105

Abstract: This paper analyzes the relationship between economic growth and productivity to budget share ratios of government expenditures in Bolivia since 1940. Government expenditures are classified according to their functional and economic characteristics and place of origin. The results indicate that defense expenditures, decentralized expenditures (local or regional), and expenditures in Santa Cruz Department represent the best ways for government to boost the country's growth. Expenditures on additional areas, such as education, and in other promising departments, such as Beni and Oruro, have the potential for generating significant growth and should be considered areas for possible government intervention.

Keywords: Bolivia; productivity of government expenditures; economic growth; generalized method of moments (search for similar items in EconPapers)
JEL-codes: E62 H50 O40 O54 (search for similar items in EconPapers)
Date: 2013
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Latin American Journal of Economics-formerly Cuadernos de Economía is currently edited by Raimundo Soto

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