Government size and growth: accounting for economic freedom and globalization

Research output: Contribution to journalArticle

Abstract

We examine the relationship between government size and economic growth, controlling for economic freedom and globalization, and using Bayesian Averaging over Classical Estimates in a panel of rich countries. <p>Countries with big government have experienced above average increases in the KOF globalization index and in the Fraser institute's Economic freedom index. To maintain comparability with earlier studies, we use two sample periods: 1970--1995 and 1970--2005. Government size robustly correlates negatively with growth. We also find some evidence that countries with big government can use economic openness and sound economic policies to mitigate negative effects of big government.

Details

Authors
Organisations
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economics
Original languageEnglish
Pages (from-to)195-213
JournalPublic Choice
Volume142
Issue number1
StatePublished - 2010
Publication categoryResearch
Peer-reviewedYes