Does Composition of Government Spending Matter to Economic Growth?

Bingxin Yu, Shenggen Fan and Anuja Saurkar

No 51684, 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists

Abstract: This paper assesses the impact of the composition of government spending on economic growth in developing countries. We use a dynamic GMM model and a panel data set for 44 developing countries between 1980 and 2004. We find that the various types of government spending have different impact on economic growth. In Africa, human capital spending contributes to economic growth whereas in Asia, capital formation, agriculture and education has strong growth promoting effect. In Latin America, none of government spending items has significant impact on economic growth. Our results are robust regardless of model specifications and instruments chosen.

Keywords: Agricultural and Food Policy; Financial Economics; International Development (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae09:51684

DOI: 10.22004/ag.econ.51684

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