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Government size and growth: accounting for economic freedom and globalization

Bergh, Andreas LU and Karlsson, Martin (2010) In Public Choice 142(1). p.195-213
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.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Public Choice
volume
142
issue
1
pages
195 - 213
publisher
Springer
external identifiers
  • wos:000272046800012
  • scopus:77949774452
ISSN
0048-5829
DOI
10.1007/s11127-009-9484-1
language
English
LU publication?
yes
id
345681a1-6b01-4fdf-b9a5-6a54cae16642 (old id 1544741)
date added to LUP
2010-02-16 12:50:34
date last changed
2017-04-02 04:18:49
@article{345681a1-6b01-4fdf-b9a5-6a54cae16642,
  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. &lt;p&gt;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.},
  author       = {Bergh, Andreas and Karlsson, Martin},
  issn         = {0048-5829},
  language     = {eng},
  number       = {1},
  pages        = {195--213},
  publisher    = {Springer},
  series       = {Public Choice},
  title        = {Government size and growth: accounting for economic freedom and globalization},
  url          = {http://dx.doi.org/10.1007/s11127-009-9484-1},
  volume       = {142},
  year         = {2010},
}