The impact of government size on economic growth: a threshold analysis
By Stylianos Asimakopoulos, Yiannis Karavias. 2016
157 citations recorded by the source corpus.
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.
Subfields: Economics and Econometrics, Political Science and International Relations
View Paper: https://www.semanticscholar.org/paper/5585db2f6f9e4908ee0e4ff8f0e7dfff92e190ae
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In Economics and Econometrics
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Citations in the corpus
- Financial development and innovation-led growth: Is too much finance better? (2020, background): “Using growth rate of per capita GDP instead of the level does not change our interpretation of the coefficient on variables of interest (see also Asimakopoulos and Karavias (2016)).”