Determinants of government consumption expenditure in developing countries : a panel data analysis
Autor: | Shonchoy, Abu S. |
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Jazyk: | angličtina |
Rok vydání: | 2010 |
Předmět: |
JEL:O5 - Economywide Country Studies
Governance JEL:E2 - Consumption Saving and Investment Public expenditures Fractionalization JEL:O11 - Macroeconomic Analyses of Economic Development JEL:H6 - National Budget Deficit and Debt Government expenditure 343.7 JEL:H50 - General JEL:H5 - National Government Expenditures and Related Policies Developing countries JEL:E62 - Fiscal Policy Public Expenditures Investment and Finance Taxation Corruption JEL:H2 - Taxation Subsidies and Revenue JEL:H4 - Publicly provided goods JEL:E02 - Institutions and the Macroeconomy JEL:H60 - General Political institutions and Extreme bound analysis JEL:E01 - Measurement and Data on National Income and Product Accounts and Wealth JEL:E61 - Policy Objectives Policy Designs and Consistency Policy Coordination |
Zdroj: | IDE Discussion Paper = IDE Discussion Paper. 266 |
Popis: | The paper focuses on the recent pattern of government consumption expenditure in developing countries and estimates the determinants which have influenced government expenditure. Using a panel data set for 111 developing countries from 1984 to 2004, this study finds evidence that political and institutional variables as well as governance variables significantly influence government expenditure. Among other results, the paper finds new evidence of Wagner's law which states that peoples' demand for service and willingness to pay is income-elastic hence the expansion of public economy is influenced by the greater economic affluence of a nation (Cameron1978). Corruption is found to be influential in explaining the public expenditure of developing countries. On the contrary, size of the economy and fractionalization are found to have significant negative association with government expenditure. In addition, the study finds evidence that public expenditure significantly shrinks under military dictatorship compared with other form of governance. |
Databáze: | OpenAIRE |
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