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Size of government and economic growth in the largest Latin American country

Helder Ferreira de Mendon �a and Thiago Cacicedo
Authors registered in the RePEc Author Service: Helder Ferreira de Mendonça

Applied Economics Letters, 2015, vol. 22, issue 11, 904-910

Abstract: This article provides empirical evidence regarding the effect of the size of government on economic growth in the Brazilian economy for the period from January 2000 to March 2013. In particular, an analysis is conducted to see whether the Armey curve fits well for the Brazilian case and the optimal government size is also estimated. The findings indicate that an increase in the size of government contributes to economic growth and that the optimal size for the Brazilian government would be approximately 22% of GDP. Brazil crossed over this limit in 2005.

Date: 2015
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DOI: 10.1080/13504851.2014.987909

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Handle: RePEc:taf:apeclt:v:22:y:2015:i:11:p:904-910