PUBLIC SPENDING REALLOCATIONS AND ECONOMIC GROWTH ACROSS DIFFERENT INCOME LEVELS
| Autor: | Santiago Acosta-Ormaechea, Atsuyoshi Morozumi |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Economics and Econometrics
Labour economics Public economics media_common.quotation_subject Corporate governance 05 social sciences General Business Management and Accounting Public spending Social protection 0502 economics and business Income level Economics Quality (business) 050207 economics 050205 econometrics media_common |
| Zdroj: | Economic Inquiry. 55:98-114 |
| ISSN: | 0095-2583 |
| DOI: | 10.1111/ecin.12382 |
| Popis: | This paper examines the effects of public spending reallocations on economic growth. Assembling a disaggregated public spending dataset of 83 countries over the 1970-2011 period, we show that spending reallocations towards education, from health and social protection, have significant growth-promoting effects across a wide range of countries' income levels. However, income heterogeneity matters, particularly when reallocations involve infrastructure spending. Specifically, a reallocation from this spending to education also promotes growth, albeit primarily when the income level is low. This occurs because the effects of infrastructure spending are particularly weak in low-income countries, possibly due to the low quality of governance. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|