EconPapers    
Economics at your fingertips  
 

Public expenditure and economic growth: a regional analysis for Colombia, 1984-2012

Jacobo Campo Robledo () and Henry Mendoza ()
Additional contact information
Henry Mendoza: Universidad Católica de Colombia

Lecturas de Economía, 2018, issue 88, 77-108

Abstract: The empirical literature shows mixed results regarding the impact of public spending on the gross domestic product (GDP) of countries in general. This paper presents evidence on the impact of public spending on regional GDP in 24 departments of Colombia, during the period 1984-2012. In addition, we apply a causality test with panel data with the aim to determine whether this relationship is supported by the Keynesian approach or the Wagnerian approach. Using a model of cointegrated panel data, we obtain the long-run equilibrium relationship and estimate its coefficients. The results show a significant and positive effect of primary public spending on GDP, which is in line with the Keynesian approach and confirms the hypothesis that increases in public spending contribute to economic growth.

Keywords: public expenditure; Keynesian approach; Wagner’s law; panel data; cointegration; Granger causality; Colombia (search for similar items in EconPapers)
JEL-codes: C33 E12 H72 R50 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://aprendeenlinea.udea.edu.co/revistas/index.p ... view/330631/20786943 (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:lde:journl:y:2018:i:88:p:77-108

Ordering information: This journal article can be ordered from
Lecturas de Economía, Departamento de Economía, Calle 67, 53-108, Medellin 050010, Colombia.

DOI: 10.17533/udea.le.n88a03

Access Statistics for this article

Lecturas de Economía is currently edited by Carlos Andrés Vasco Correa

More articles in Lecturas de Economía from Universidad de Antioquia, Departamento de Economía Contact information at EDIRC.
Bibliographic data for series maintained by Carlos Andrés Vasco Correa ().

 
Page updated 2019-12-02
Handle: RePEc:lde:journl:y:2018:i:88:p:77-108