Skip navigation

Does government size affect per-capita income growth? A hierarchical meta-regression analysis

Does government size affect per-capita income growth? A hierarchical meta-regression analysis

Awawoyi, Sefa, Ugur, Mehmet ORCID: 0000-0003-3891-3641 and Yew, Siew Ling (2015) Does government size affect per-capita income growth? A hierarchical meta-regression analysis. [Working Paper]

[img]
Preview
PDF
GPERC20_Churchill_Yew_UgurF.pdf - Published Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (854kB)

Abstract

We conduct a hierarchical meta-regression analysis to review 87 empirical studies that report 769 estimates for the effects of government size on economic growth. We follow best-practice recommendations for meta-analysis of economics research, and address issues of publication selection bias and heterogeneity. When size is measured as the ratio of total government expenditures to GDP, the partial correlation between government size and per-capita GDP growth is negative in developed countries, but insignificant in developing countries. When size is measured as the ratio of consumption expenditures to GDP, the partial correlation is negative in both developed and developing countries, but the effect in developing countries is less adverse. We also report that government size is associated with less adverse effects when primary studies control for endogeneity and are published in journals and more recently, but it is associated with more adverse effects when primary studies use cross-section data. Our findings indicate that the relationship between government size and per-capita GDP growth is context-specific and likely to be biased due to endogeneity between the level of per-capita income and government expenditures.

Item Type: Working Paper
Uncontrolled Keywords: economic growth; Government size; Government expenditure; Government consumption; meta-analysis; evidence synthesis;
Subjects: H Social Sciences > H Social Sciences (General)
Faculty / Department / Research Group: Faculty of Business > Greenwich Political Economy Research Centre (GPERC)
Related URLs:
Last Modified: 19 Nov 2015 15:05
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
URI: http://gala.gre.ac.uk/id/eprint/14071

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics