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The Impacts of Public Expenditure, Government Stability and Corruption on Per Capita Growth: An Empirical Investigation on Developing Countries

Selçuk Çağrı Esener and Evren İpek

Sosyoekonomi Journal, 2018, issue 26(36)

Abstract: This study aims to evaluate the effects of public expenditure, government stability and corruption on economic growth with other control variables namely openness and population growth. The empirical analyses are utilized by using annual panel data for 33 countries which are classified as Upper and Lower Middle-Income Countries by World Bank. The sample period covers the years between 1999 and 2014. The empirical analyses are performed by both the static panel data approach and dynamic generalized method of moments (GMM) techniques. The estimation results point out statistically significant positive impacts of government stability and openness variables on per capita growth in these developing countries. Moreover, corruption, population growth and public expenditure variables are found to cause some significant decreasing effects on economic growth.

Keywords: Economic Growth; Government Stability; Corruption; Public Expenditure; Panel Data Analysis. (search for similar items in EconPapers)
JEL-codes: E60 F43 H00 H50 O47 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:sos:sosjrn:180201

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