Document Type : مقالات پژوهشی
Authors
Abstract
Abstract
Nowadays, aims such as development, social welfare, structural and infrastructure developments and achieving economic growth by benefiting from government expenditure have become one of the main concerns of the countries. It asks for reviewing the role of government in economy all over the world. This study, investigated the effects of the components of government expenditures on Components development and welfare in Selected Developed and Developing Countries during the period of 1996-2010, by using panel data approach.
The results show that although public, social and economic expenditures have a positive impact on development and welfare in developed countries, but just the social expenditure has a statistically significant effect. Regarding the developing countries, the results show the positive impact and significant effect of public and economic expenditures on development and welfare of these countries. But despite of being positive, the Coefficient of social expenditure is not significant statistically. Also the findings reveal that defense expenditures in both groups of countries have a significant and negative impact.
Keywords: Government Expenditure, Welfare, Human Development Index, Developed and Developing countries.
JELClassification: H11, H53, I38
Keywords
References
1- Abrishami, H. (2002). Applied Econometrics, Tehran, Tehran University Press. (In Persian).
2- Afshari, Z. Shirin bakhsh, Sh and Ebrahimi, S N. (2012). Comparison of the optimal size of government spending and investment on human development index (the study of developed and developing countries) ", Journal of Economic Development. No 8, PP 37-50. (In Persian).
3- Alikhani, S. Asef Zadeh, S and Montazeri, A. (2012).Studying Iran's human development index", Journal of monitoring, No. 4, pp 415-423. (in Persian).
4- Anand S, Ravallion M. (1993). "Human development inpoor countries: on the roleof private incomes andpublic services", J Econom Perspect, Vo. 7, PP. 133-150.
5- Bohacek, R., Kapicka, M. (2008). "Optimal Human Capital Policies", Journal of Monetary Economics, Vo. 11, PP. 1-16.
6- Chen, S T. Chen, C C and Kim, Y. (2011). "Economic Growth and Government Sizein OECD Countries: New Evidence from the Quantile Rrgression Approach", Economics Bulletin,Vol. 31, No. 1, PP. 45-52
7- Crafts, Nick. (1997). "The human development index and changes in standard of living: some historical comparisons", European Review of Economic History, Vo. 1, PP. 299-322.
8- Dadgar, Y and Nazari, R A. (2011).Welfare analysing of subsidies policies in the economy, Journal of Social Welfare. No. 42, pp. 337-380. (In Persian).
9- Davies, A. (2009). "Human Development and the Optimal Size of Government", Journal of Socio-Economics, Vo. 38, PP. 326-330.
10- Desai, M. (1991). "Human Development-Concepts and Measurements", European Economic Review, Vo. 35, PP.350-357.
11- Faini, R. Annez, P and Taylor, L. (1984). "Defence Spending, Economic Structure and Growth: Evidence Am ong Countries and Over Time", Economic Development and Cultural Change, Vo. 32, No. 3, PP. 487-498.
12- Fetros. M H. Aghazadeh, A and jebraeli, S. (2011). The impact of economic growth on renewable energy comparison of selected countries and non-member Organization for Economic Cooperation and Development, Journal of Economic Research and Policy. No. 60, pp. 81-98. (In Persian).
13- Ghanbari, A and Baskha, M. (2008).Studying Effects of government health spending and economic growth in Iran (1959-2004), Journal of Economic Research, No. 83, pp. 187-224. (In Persian).
14- Gebregziabher, F and Nino-Zarazua, M. (2014). “Social spending and aggregate welfare in developing and transition economies”, World Institute for Development Economics Research, WIDER Working Paper 2014/082.
15- Gomanee, K. Morrissey, 0. Mosley, P and Verschoor, A. (2005). "Aid, government expenditure, and aggregate welfare",World Development, Vol.33, No. 3, PP. 355-370.
16- Gorji, E. (1998). The effects of government economic policies on income distribution, Journal of Business. No. 2, pp. 44-75. (In Persian).
17- Guseh, J. and Winter, S. (1997). "Government Size and Economic Growth in DevelopingCountries: A Political –Economy Framework", Journal of Macroeconomic, Vo. 19, No. 1, PP.175-192.
18- Haque, M E and Osborn D R. (2007)."Public expenditure and economic growth: A disaggregated analysis for developing countries". The Manchester School, Vol. 75, No.5, PP. 533-556.
19- Hayati, A. (2000). Government and Growth, Tehran: Programe and Budget Organization, the Center for Economic and Social Documentation. (In Persian).
20- Heitger, B. (2001)." The Scope of Government and its Impact on Economic Growth in OECD Countries", Kiel Working Paperno. 1034, Institute of World Economics, Kiel.
21- Herath, S. (2010). "The Size of the Government and Economic Growth: An Empirical
22- Hosayni, S M. Abdi, A L and Fedayi, A. (2005). A comparative study of the composition of the government budget spending between developed and developing countries, and Iran, The Economic Journal. No 41,42, pp18-49. (In Persian).
23- Hosayni, S M. Abdi, A L and Fedayi, A. (2008). Composition of government spending components and its impact on economic growth with a focus on government affairs and public funding seasons, "Journal of researches and Economic Policy, No 48, pp 37-63. (In Persian).
24- Huang, C and Mintz, A. (1991)."Defense expenditures and economic growth: The externality effect", Publishing models and article dates explained, Vol. 3, No. 1, PP. 35-40.
25- Kao, C and Chiang, M. (1999). "on the Estimation and Inference of a Cointegrated Regression in Panel Data", Working Paper, Center for Policy Research, Syracuse University, New York.
26- Karras, G. (1996). "The Optimal Government Size: Further International Evidence on the Productivity of Government Services", Economic Inquiry, Vo. XXXIV, PP.193-203.
27- Landau, Daniel. (1983). "Government expenditure and economic growth: a cross-country study", Southern Economic Journal Vol. 49, PP. 783-792.
28- Levin, A.Lin, F U and Chia-Shang, J C. (2002)."Unit Root tests in Panel data: Asymptotic and Finite-Sample Properties", Journal of Econometrics, No. 108, PP. 1–24.
29- Lim, D. (1983). "Another Look at Growth and Defense in Less Developed Countries",Economic Development and Cultural Change, Vol. 31, No. 2, PP. 377-384.
30- Lutfi, E and Randall G, H. (2005)."The Effects of public Investment on private Investment in Developing Economics", public Finance Review, Vo. 33, No. 5, PP. 575-602.
31- Mahmud, M N and Ahmed, M. (2012). "Government expenditure and household consumption in Bangladesh through the lens of economic theories: an empirical assessment", Munich Personal RePEc Archive (MPRA Paper), No. 36035.
32- Mozen Jamshidi, H. Moghimi, M and Akbari, N A. (2011). Analysis of the effect of government size on human development in countries OIC (geographically weighted regression approach (GWR)), urban and regional studies, No 8, pp 95-116. (In Persian).
33- Nurudeen, A and Abdullahi O. (2010). "Government Expenditure and Economic Growth in Nigeria, 1970-2008: A Disaggregated Analysis", Business and Economic Journal, Vo. 15, PP. 45-52.
34- Osari Arani, A and Afzali Abar Ghoei, W. (2010). The relationship between the size of the state and human development (comparing oil-producing countries and non-oil developing countries), Journal of Social Welfare. No 36, pp 61-90. (In Persian).
35- Peden, E A. (1991)."Productivity in the United States and its Relationship to Government Activity: An analysis of 57 years, 1929-1986", Public Choice, No. 69, PP. 153-173.
36- Ram, Rati. (1986). "Government Size and Economic Growth: A New Framework and some Evidence of Cross Section and Time Series Data", American Economic Review,Vo. 76, No. 1, PP. 191-203.
37- Romer, P. (1990). "Endogenous Technological Change".Journal of Political Economy, Vol. 98, PP. 274-298.
38- Saad, W and Kalakech K. (2009)."The nature of government expenditure and its impact on sustainable economic growth",Middle Eastern Finance and Economics, Vol. 4, PP. 38-47.
39- Sadeghi, H. Abdolahi, H and Abdolah Zadeh, L. (2007). Human Development in Iran” , Journal of Social Welfare. No. 24, pp. 283-304. (in Persian).
40- Sadeghi, H. Asgharpoor, H and Eslami Nejad, S A H. (2007). Effect of government spending on private sector investment in iran using ARDL, Journal of Economic Sciences. No. 1, pp. 109-138. (In Persian)
41- Salimi Far, M and Ghawi, M. (2002). Bank facilitics and private investments in Iran, Iranian Journal of Economic Research, NO 13, pp 135-170. (In Persian).
42- Sameti, M. Sameti, M and Ghazawi, R. (2008).Studying The effect of government budget composition on social welfare: period (1382-1360), Journal of Development and Investment. No. 2, pp. 49-71. (In Persian).
43- Sharifi, N and Alizadeh, M. (2002), Effects of government spending on the regional economy using Social Accounting Matrices: A case study in Golestan province, Iranian Economic Research. No.13, pp. 56-66. (In Persian).
44- Shelton, C A. (2007). "The Size and Composition of Government Expenditure", Journal of Public Economics, Vo. 91, PP. 2230-2260.
45- Shirin bakhsh, Sh. Amini, T and Harati, J. (2012). Studying the effect of government size (share of consumption spending and investment) on Human Development: Using panel data model, Journal Economics monetary financing. No. 3, pp. 130-151. (in Persian).
46- Tayyebi, K. Emadzadeh, M and Sheykhbahaei, A. (2008), “Impacts of Industrial exports and the human capital on the productivits of production factors and Economic growth in OIC countries", Journal of Quantitate Economy, No. 2, pp. 85-106. (In Persian).
47- UNDP.2002, 2006, 2011."The Human Development concept"Retrieved from: Url undp.org.
48- International Monetary Fund. (2011). Government Finance Statistics(GFS).
49- World Bank. (2011). World Development Indicators 2011. Available from: http://data.worldbank.org/indicator.
)
Send comment about this article