Government size and efficiency as constraints to economic growth: comparing Croatia with other European countries

The rapid economic growth observed in Central European countries in the last thirty years has been the result of profound political changes and economic liberalization. This growth is partly connected with reducing carbon dioxide (CO2) emissions. However, the problem of CO2 emissions seems to remain unresolved. The aim of this paper is to test whether the Environmental Kuznets Curve (EKC) hypothesis holds true for Central European countries in an annual sample data that covers 1995–2016 in most countries. We examine cointegration by applying the Autoregressive Distributed Lag bound testing. This is the first study examining the relationship between CO2 emissions and economic growth in individual Central European countries from a long-run perspective, which allows the results to be compared. We confirmed the cointegration, but our estimates confirmed the EKC hypothesis only in Poland. It should also be noted that in all nine countries, energy consumption leads to increased CO2 emissions. The long-run elasticity ranges between 1.5 in Bulgaria and 2.0 in Croatia. We observed exceptionally low long-run elasticity in Estonia (0.49). Our findings suggest that to solve the environmental degradation problem in Central Europe, it is necessary to individualize the policies implemented in the European Union.

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Relationships between government size and economic growth: Japan's government reforms and evidence from OECD

International Public Management Journal ◽

10.1016/s1096-7494(99)80091-9 ◽

1998 ◽

Vol 1 (2) ◽

pp. 195-223 ◽

Cited By ~ 2

Author(s):

K TERASAWA ◽

W GATES

Keyword(s):

Economic Growth ◽

Government Size ◽

Government Reforms

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A Study on Assessing Government Size, the Composition of Public Spending on Education and Economic Growth in the USA

Journal of Accounting Business and Finance Research ◽

10.20448/2002.111.1.8 ◽

2021 ◽

Vol 11 (1) ◽

pp. 1-8

Author(s):

Wing Yee Choi

Keyword(s):

Economic Growth ◽

Public Spending ◽

Government Size ◽

The Usa ◽

Education And Economic Growth

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Patterns of Interrelationships between Inflation, R&D, Innovation, and Economic Growth: Evidence from Central and Eastern European Countries

10.15179/ces.22.2.1 ◽

2020 ◽

Vol 22 (2) ◽

pp. 5-33

Author(s):

Ljubivoje Radonjić ◽

◽

Nevena Veselinović ◽

Keyword(s):

Economic Growth ◽

Positive Impact ◽

Primary Objective ◽

Output Growth ◽

European Countries ◽

Eastern European ◽

Innovation Activities ◽

Private And Public ◽

Eastern European Countries ◽

The Impact

The primary objective of the article is to examine the nexus between inflation, R&D, patents, and economic growth within a group of Central and Eastern European countries (CEECs). The examination is conducted in two parts. First, the impact of total R&D expenditures on economic growth is observed, as well as the influence of growth on private and public R&D investments. Second, the conversion from private and public R&D investment to innovation, measured by the number of patents, is observed. Throughout the analysis, economic growth and inflation are representative of macroeconomic stability. The outcomes of the panel auto-regressive distributed lag estimation indicate that total R&D expenditures are essential and positively significant for economic growth in the observed countries. The results also show that output growth has a remarkably positive impact on generating private R&D expenditures. Such an influence is also found, but at a weaker level, in the case of public R&D expenditures. In this part of the analysis, inflation has demonstrated a harmful influence on R&D expenditures. The results of the second part indicate that public and private R&D expenditures, at a significant level, generate innovation activities, while the impact of inflation has proven to be unimportant.

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Government Size and Economic Growth in Vietnam: A Panel Analysis

Journal of Asian Business and Economic Studies ◽

10.24311/jabes/2014.222.03 ◽

2014 ◽

Vol 222 ◽

pp. 17-39

Author(s):

THÀNH SỬ ĐÌNH

Keyword(s):

Economic Growth ◽

Generalized Method Of Moments ◽

Government Expenditure ◽

Provincial Government ◽

Government Size ◽

Government Revenue ◽

Long Run ◽

Short Run ◽

Per Capita ◽

A Share

The effect of government relative size on economic growth is a contentious issue. This paper is undertaken to test the relationship between government size and economic growth in Vietnam. The study is a panel data investigation, involving 60 provinces over the period 1997–2012. Various measures of government size are defined: provincial government expenditure as a share of gross provincial product (GPP), provincial government revenue as a share of GPP, real provincial government expenditure per capita, and real provincial government revenue per capita. Empirical estimates are employed by conducting Difference Generalized Method of Moments method proposed by Arellano and Bond (1991) and Pooled Mean-Group method by Pesaran, et al. (1999). These tests reveal: (i) provincial government expenditure (revenue) as a share of GPP has a significantly negative effect on economic growth; and (ii) the real government expenditure (revenue) per capita has a significantly positive effect on economic growth. It is also found that the long-run and short-run coefficients of government expenditure size are significant and negative, that the correction mechanism from the short run disequilibrium to the long run equilibrium is not convergent, and that government employment has a negative correlation with economic growth.

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The Impact of Corruption on Economic Growth

Wealth Creation and Poverty Reduction ◽

10.4018/978-1-7998-1207-4.ch015 ◽

2020 ◽

pp. 266-290

Author(s):

Noha A. Farrag ◽

Asmaa M. Ezzat

Keyword(s):

Economic Growth ◽

Empirical Evidence ◽

Random Effects ◽

Negative Impact ◽

European Countries ◽

Random Effects Model ◽

Mena Countries ◽

The Impact

Even though corruption is correlated to political and moral degradation, there is no consensus on the impact of corruption on economic growth. Although, theory leans to the view that corruption has negative impact on growth, still empirical evidence and counter arguments show that there might be positive implications for corruption. This paper compares the corruption impact on growth in 17 developed European countries vs. 15 developing MENA countries using a pooled OLS model and a random effects model for the period (1999-2012). This paper contributes to the literature by examining the impact of corruption on growth in scarcely examined countries in Europe and MENA. Also, the paper findings are intriguing because they show that the region, as a proxy to degree of development, significantly influences the effect of corruption on economic growth.

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