SIZE OF THE PUBLIC SECTOR, ECONOMIC GROWTH AND THE INFORMAL ECONOMY: DEVELOPMENT TRENDS IN THE FEDERAL REPUBLIC OF GERMANY*

1982 ◽  
Vol 28 (2) ◽  
pp. 191-215 ◽  
Author(s):  
Hans-Georg Petersen
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Federal Republic ◽  
Informal Economy ◽  
Federal Republic Of Germany ◽  
Development Trends ◽  
The Public

Economic Implications of Migration into the Federal Republic of Germany, 1988–1992

1995 ◽  
Vol 29 (3) ◽  
pp. 693-709
Author(s):  
Arne Gieseck ◽  
Ullrich Heilemann ◽  
Hans Dietrich von Loeffelholz
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Labor Markets ◽  
Federal Republic ◽  
Social System ◽  
West Germany ◽  
Federal Republic Of Germany ◽  
Economic Implications ◽  
The Public ◽  
The Social

An analysis of the effects of the last wave of migration into West Germany on labor markets, public finances and economic growth, this study points at the often ignored fact that the migrants were rather successful in finding jobs and thus helped in eliminating labor shortages in certain industries. Simulations with a macroeconometric model for the FRG indicate that in 1992 the GDP was almost 6 percent higher than without migration, that 90,000 jobs were created and that migration created a surplus of DM14 billion in the public sector, compared to the baseline. This study also makes clear, however that these effects mainly depend on a quick absorption of migrants by FRG labor markets, and as to the social system, the relief may be only transitory.

Public investments, productivity and economic growth

2017 ◽  
Vol 66 (2) ◽  
pp. 251-265 ◽  
Author(s):  
Olga Murova ◽  
Aman Khan
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Panel Data ◽  
Public Safety ◽  
Tax Revenue ◽  
Content Type ◽  
The Public ◽  
Public Investments ◽  
The Usa ◽  
Service Sectors

Purpose The purpose of this paper is to use stochastic frontier analysis (SFA) to estimate the efficiency of public investments and their impact on economic growth in the USA using panel data. Results of the study show highly significant and positive relationships between gross state product (GSP) and expenditures on education, transportation, health, welfare, and public safety (police and fire), and negative but significant relationships between output and employment in health care and public safety services. Inefficiencies in the study are measured using per capita tax revenue and time. Tax revenue has a very minimal positive and significant effect on efficiency, while time inversely relates to efficiency. Design/methodology/approach The present study uses SFA to investigate the efficiency of government expenditures in five service sectors – education, transportation, health, welfare, and public safety (police and fire), using recent data and economic trends. The study hypothesizes that changes in the current levels of expenditures in the public sector have a significant impact on the aggregate economy, as measured by GSP. The study uses GSP as the dependent (output) variable, and government expenditure on the five service sectors as the independent (input) variables. Findings Analysis of efficiency for individual states for all 21 years produced interesting results. Overall, the technical efficiency of the public sector was quite high. The average TE score across all years and all states was 0.878. This suggests that public sector operates at a relatively high efficiency level. Originality/value The current SFA model followed Battese and Coelli approach of estimating efficiency of public sectors in each state of the USA. It allowed estimation of policy impact on the overall efficiency. It was applied to macroeconomic panel data.

scholarly journals MALAYSIAN PUBLIC SECTOR SIZE: A COMPARISON WITH OTHER ASEAN COUNTRIES

2021 ◽  
Vol 11 (Number 1) ◽  
pp. 1-20
Author(s):  
Noor Afza Amran ◽  
Halimah @ Nasibah Ahmad ◽  
Nor Laili Hassan
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Gross Domestic Product ◽  
The Philippines ◽  
Future Research ◽  
Optimal Size ◽  
The Public ◽  
Descriptive Approach ◽  
Asean Countries ◽  
Key Indicators

The aim of this paper is to evaluate the size of the public sector (based on percentage of public sector expenditures to Gross Domestic Product (GDP) and percentage of public sector revenues to GDP) of Malaysia and compare it with other Associations of Southeast Asian Nations (ASEAN) countries. This study utilised a descriptive approach to compare the size of Malaysian public sector with other ASEAN countries (Brunei, Cambodia, Indonesia, Laos, the Philippines, Thailand, and Vietnam). The data were retrieved from 2000 to 2014 (15 years) that involved examination of documents from Key Indicators of Developing Asian and Pacific Countries Reports. Findings revealed that Malaysia ranks number three in terms of the size of public sector among ASEAN countries. Findings also indicated that the Malaysian percentage of public sector expenditure to GDP is around 20% to 30% which is considered as optimal size for the public sector. Malaysia also shows a deficit budget for 2000 to 2014, and similar trends were reported for other ASEAN countries. Meanwhile, the limitations of this study are that it is descriptive in nature and does not test any relationships between variables. Hence, future research may take into account other factors such as economic growth and government efficiency, and test relationships with the size of the public sector.

scholarly journals The Role of DFIs in Industrial Growth and Transformation: Why the East Asian Countries Succeeded and Pakistan Did Not

2015 ◽  
Vol 20 (Sspecial Edition) ◽  
pp. 13-30
Author(s):  
Shakil Faruqi
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Structural Adjustment ◽  
Emerging Market ◽  
Active Role ◽  
Industrial Growth ◽  
Policy Regime ◽  
The Public ◽  
Credit Financing

In this paper we explore how development finance institutions (DFIs) helped to promote industrial growth with active role of public sector in emerging market economies – Korea, China, India, Malaysia, Brazil, Mexico, Turkey. The DFIs provided long-term credit financing which led to structural transformation of their economies. These countries have succeeded in spectacular fashion at this transformation over the past four decades but Pakistan did not; why? There has been an endless debate concerning the role of the public sector vis-à-vis the private sector in promoting economic growth and it continues in the present. I begin by asserting that historically public sector has been in the forefront in starting and sustaining economic growth. This not a leap of faith, rather this has been the experience of most emerging economies. They have gone through reforms, liberalization and structural adjustment, ushering in market-based policy regime and opening up foreign trade and capital flows.

scholarly journals Economic Growth and the Public Sector: A Comparison of Canada and Italy, 1870-2013

2018 ◽  
Vol 10 (3) ◽  
pp. 221-243
Author(s):  
Livio Di Matteo ◽  
Thomas Barbiero
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Economic Performance ◽  
Government Spending ◽  
Central Government ◽  
Government Size ◽  
Size Of Government ◽  
The Public ◽  
Economic Stagnation

There is considerable evidence that the size of the public sector can influence an economy’s rate of economic growth. We investigate public sector spending of central governments and economic performance in two G7 countries over the long-term, Canada and Italy. Their economic performance has diverged in the last 25 years and it is worth investigating whether the size of government was a contributing factor. We find that in both the case of Canada and Italy the size of central government spending directly affects the performance of their economies in an inverse U-shaped relationship known as a Scully/BARS Curve. These results suggest that along with modifying current central government size, other levels of governments may need to shrink their own spending. The fact that the amount spent by government on pensions as a percentage of GDP in Italy is nearly 4 times that in Canada may partly explain the higher level of Italy’s public debt as well as an indirect contributing factor to economic stagnation in the last 25 years.

Government spending and economic growth in the Middle East and North Africa region

2020 ◽  
pp. 002085232096980
Author(s):  
Bassam Abdullah Albassam
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Middle East ◽  
Public Participation ◽  
North Africa ◽  
Government Spending ◽  
Arab Countries ◽  
The Public ◽  
Vision 2030 ◽  
The Relationship

In 2011, during the Arab Spring, citizens in some Arab countries marched in the streets, demanding decreased corruption, increased public participation in running state affairs, and provision of jobs for citizens. In response, governments in the Middle East and North Africa region initiated strategic plans to meet the people’s demands (e.g. Morocco Vision 2030, Saudi Vision 2030). One of the main parts of these plans is related to reforming the public finance sector. Recently, in response to the novel coronavirus (COVID-19) pandemic, most Middle East and North Africa countries have taken loans or withdrawn from reserves (both considered sources of funding for government expenditures) to support the economy and fund the healthcare plans to fight the disease. Thus, the efficiency and effectiveness of government spending is very important in utilizing the available resources at all times. Using data for the Middle East and North Africa region from 1990 to 2019, and utilizing a scatterplot technique and the general linear modeling procedure, this article explores the relationship between public expenditures and economic growth. The results show that the current public expenditure system is inefficient and that efficient public spending has to be combined with other factors that influence the economy (e.g. enhancing public participation in running state affairs, controlling corruption, and supporting good governance practices in the public sector). Points for practitioners Government spending is one of the most important elements in managing state affairs toward achieving advanced levels of development and providing high-quality services to beneficiaries. This research explores the relationship between government spending and economic growth; the result of this study confirms that non-financial factors, such as fighting corruption, promoting democracy and freedom, enhancing public institutions’ quality, and supporting the productivity and accountability of the public sector, are important dimensions in promoting economic growth, especially in developing countries.

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