Public Size and Economic Development: Application in OECD Countries

Yıl 2016, Cilt: 2 Sayı: 3, 2016231181 - 2016231198, 01.11.2016

Simla Guzel Isın Cetın

Öz

It is difficult to determine the optimal level of public expenditure volume which is one of the most important indicators of the extent of the state activity in the economy. Although the volume changes from one country to another, generally accepted opinion is to improve the productivity in public expenditures. The objective of the present study was to determine the effect of public expenditures and types of expenses on economic development in OECD countries. Human development index HDI was accepted as the indicator of economic development. Spatial statistical methods were used to analyze dissimilarities between the nations in this study. We analyzed the countries using HDI level in two groups; countries with low HDI score and countries with high HDI score. The hypothesis was that the countries with low HDI levels have more public spending than the countries with high HDI levels. Especially, The United Kingdom, Italy, Chile and Turkey were the most obvious specimens.

Kaynakça

• Annoni, P. & Kornelia, K. (2010). EU Regional Competitiveness Index 2010, JRC Scientific and Technical Reports, EuropeanCommissionJointResearchCentre.
• Acosta-Ormaechea & S., Morozumi, A. (2013), “Can a Government Enhance Long-Run Growth by Changing the Composition of Public Expenditure?”, IMF Working Paper, WP/13/162.
• Afonso, A., Schuknecht, L. & Tanzi, V. (2005), “Public sector efŞciency: An international comparison”, Public Choice, Vol.123, p.321–347.
• Afonso, A., Schuknecht, L & Tanzi, V. (2008), “Income Distribution Determinants and Public Spending Efficiency”, Working Paper, No.861.
• Afonso, A., Schuknecht, L & TanziV. (2010), “Public Sector Efficiency: Evidence for New EU Member States and Emerging Markets”, Applied Economics, No. 42, p.2147–2164.
• Afonso, A . & Jalles, J., T.(2011), “Economic Performance and Government Size”, European Central Bank Working Paper, No.1399.
• Angelopoulos, K., Philippopoulos A. &.Tsionas E, (2008), “Does public sector efficiency matter? Revisiting the relation between fiscal size and economic growth in a world sample”, Public Choice, Vol.137, p. 245–278.
• Anselin, L. (1988). Spatial Econometrics: Methods and Models, Dordrecht, the Netherlands: Kluwer.
• Anselin, L. (1995). “Local Indicators of Spatial Association-LISA”, Geographical Analysis 27(2), p. 93-115.
• Asghar, N., Hussain, Z., & Rehman, H. U.(2012), “The impact of government spending on poverty reduction: Evidence from Pakistan 1972 to 2008”, African Journal of Business Management, 6(3), p.845-853.
• Barro, R. J, (1991). “Economic Growth in a Cross Section of Countries, (1991)”, The Quarterly Journal of Economics, 106 (2), p. 407-443.
• Dalamagas, B. (2000), “Public sector and economic growth: the Greek experience”, Applied Economics, Vol. 32, p. 277-288.
• Fölster, S., Henrekson, M. (2001), “Growth effects of government expenditure and taxation in rich countries”, European Economic Review, 45(8), p.1501-1520.
• Fukuda-Parr, S., (2003) “The Human Development Paradigm: Operationalizing Sen’s Ideas on capabilities”, Feminist Economies, 9 (2-3), p.301-317.
• Ghali, K. H., (1998), “Government size and economic growth: evidence from a multivariate cointegration analysis”, Applied Economics, Vol. 31, p.975–987.
• Gupta, S., Verhoeven, M. (2001), “The Efficiency of Government Expenditure Experiences From Africa”, Journal of Policy Modeling, Vol. 23. , p. 433-467.
• Hauner, D. & Kyobe, A. (2010), “Determinants of Government Efficiency”, World Development, 38 (11), p.1527–1542
• Herrera, S., Pang, G. (2005), Efficiency of Public Spending in Developing Countries: An Efficiency Frontier Approach, World Bank.
• Jacobs, G. & Slaus, I. (2010), “Indicators of Economics Progress: The Power of measurement and Human Welfare”, Cadmus Journal, 1 (1), p. 53-113.
• LeSage, J. P. (1997). “Regression Analysis of Spatial Data”, The Journal of Regional Analysis and Policy, 27(2),p. 83-94.
• Martins, S. & Veiga, F. J. (2014), “Government size, composition of public expenditure, and economic development”, International Tax and Public Finance, 21(4), August,p. 578- 597.
• Oscar B., A further generalization of the Solow growth model: the role of the public sector, Economics Letters, 68, p. 79–84.
• Paternostro, S., Rajaram, A. &. Tiongson E. R (2007), “How Does the Composition of Public Spending Matter”?, Oxford Development Studies, 35 (1),p. 47-82.
• Prasetyo, A. D. & Pudjono, A. (2013) “Measuring Government Expenditure Efficiencies towards Peace and Human Development”, ISS & MLB, September 24-26, p.487-497.
• Rajkumar, A. S. & Swaroop V. (2008), “Public spending and outcomes: Does governance matter”, Journal of Development Economics, Vol. 86, p.96–111.
• Schuknecht, L. &Tanzi V. (2005), Reforming Public Expenditure in Industrialized Countries Are There Trade-Offs?, European Central Bank Working Paper Series, No.435.
• Seers, D. (1969), The Meaning of Development, Institute of Development Studies, Working Paper, No.44.
• Sen, A. (2000), “A Decade of Human Development”, Journal of human development, 1 (1), p.17-23.
• Slemrod, J, Gale, W. G. &Easterly W.(1995), “What Do Cross-Country Studies Teach about Government Involvement, Prosperity, and Economic Growth?”, Brookings Papers on Economic Activity, 1995 (2),p.373-431.
• Suescun, R., (2007), The Role of Fiscal Policy in Human Development and Growth, LAC Regional Study.
• Tanzi, V. (2005), “The Economıc Role of the State in the 21st Century”, Cato Journal, 25, p. 617–38.