TY - JOUR
T1 - The impact of government size on economic growth
T2 - a threshold analysis
AU - Asimakopoulos, Stylianos
AU - Karavias, Ioannis
PY - 2016/2
Y1 - 2016/2
N2 - We examine the nature of the relationship between government size and economic growth and identify the optimal level of government size using a large dataset through a novel and very general non-linear panel Generalized Method of Moments approach. We show that this relationship is statistically significant above and below the optimal level, even after splitting our sample to developed and developing countries. Finally, we find an asymmetric impact of government size on economic growth in both developed and developing countries around the estimated threshold.
AB - We examine the nature of the relationship between government size and economic growth and identify the optimal level of government size using a large dataset through a novel and very general non-linear panel Generalized Method of Moments approach. We show that this relationship is statistically significant above and below the optimal level, even after splitting our sample to developed and developing countries. Finally, we find an asymmetric impact of government size on economic growth in both developed and developing countries around the estimated threshold.
UR - https://doi.org/10.1016/j.econlet.2015.12.010
U2 - 10.1016/j.econlet.2015.12.010
DO - 10.1016/j.econlet.2015.12.010
M3 - Article
SN - 0165-1765
VL - 139
SP - 65
EP - 68
JO - Economics Letters
JF - Economics Letters
ER -
