Impact of Government on Growth and Trade

Anne O. Krueger and David Orsmond

No 3545, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper we attempt to test the development economist's perceptions of the negative contributions of governmental activities, as well as the positive contributions of other activities, to growth. This paper provides evidence on the importance of government behavior for economic growth and, in so doing, attempts to start building a bridge between the development economics literature and the new growth theory. The focal point is the recognition that governments do more than spend and tax in manners that maximize social welfare functions: they influence incentives and regulate in ways that affect private behavior, and their spending, even on infrastructure, is not always optimal.

Date: 1990-12
Note: EFG
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Citations: View citations in EconPapers (3)

Published as in Wilfred Ethier, Elhanan Helpman and Peter Neary, eds., Theory, Policyand Dynamics in International Trade, Cambridge University Press, p. 237-251 Impact of Government on Growth and Trade, Cambridge: Cambridge University Press, 1993.

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