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.

Mexico power centralisation will bring heavy criticism

2019 ◽  
Keyword(s):  
Public Sector ◽  
Central Government ◽  
State Governments ◽  
Public Servants ◽  
Content Type ◽  
The Public ◽  
State Capture

Subject Balance of powers in Mexico. Significance Since taking office last year, President Andres Manuel Lopez Obrador (AMLO) and his National Renovation Movement (Morena) have taken several measures to make savings in the public sector and to allocate resources to tackling poverty and corruption. Such goals enjoy widespread support, but some of the mechanisms employed to achieve them are concentrating power with the central government. The areas most affected include constitutionally autonomous entities within the administration, other branches of government such as the judiciary, and state governments. Impacts Given the role of poorly paid public servants in state capture, salary cuts may prove counterproductive in fighting corruption. Without a system that impartially investigates, prosecutes and sanctions wrongdoing by public servants, corruption will not abate. Centralisation will strengthen the administration initially but leave it vulnerable in the long term when things do not work as intended.

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.

scholarly journals Fiscal Decentralisation, the Size of the Public Sector, and Economic Growth in Turkey

10.1068/c0421 ◽  
2005 ◽  
Vol 23 (1) ◽  
pp. 3-19 ◽  
Author(s):  
Isa Sagbas ◽  
Huseyin Sen ◽  
Muhsin Kar
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Public Sector ◽  
Cross Section ◽  
Central Government ◽  
Empirical Test ◽  
Negative Relationship ◽  
The Public ◽  
Fiscal Decentralisation ◽  
The Impact

The aim of this study is to examine the impact of fiscal decentralisation on the size of the public sector and economic growth in Turkey. An empirical test of the Leviathan hypothesis by using recently developed econometrical tools shows that fiscal decentralisation does not curb the growth of central government. The finding is not compatible with explanations of the efficiency benefits of greater decentralisation. An investigation of the impacts of fiscal decentralisation on economic growth by utilising time series in a framework of the production function for the period 1982–2000 and cross-section analyses on sixty-seven provinces indicates that there is a negative relationship between fiscal decentralisation and economic growth.

The Optimal Public Expenditure in Developing Countries

2019 ◽  
Vol 35 (2) ◽  
Author(s):  
Hoang Khac Lich ◽  
Duong Cam Tu
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Public Choice ◽  
Empirical Evidence ◽  
Government Spending ◽  
Public Expenditure ◽  
Government Size ◽  
Optimal Size ◽  
Size Of Government ◽  
Factors Affecting

Many researchers believe that government expenditures promote economic growth at the first development stage. However, as public expenditure becomes too large, countries will suffer a huge tax burden and tax distortions. This suggests an optimal public expenditure at which economic growth rate is the highest. However, the optimal point would differ across countries because of differences in economic structure. In this present paper, the optimal public expenditure in the developing countries is analyzed. Based on descriptive statistics and regression analysis of 30 developing countries in the period 2004-2013, the findings of this paper are threefold: (i) public expenditure increases along with development level of countries; (ii) the optimal public expenditure is at 19. 375% of GDP; (iii) economic growth has a positive relationship with both investment and labor force, and a negative relationship with urbanization. Keywords Public expenditure; Economic growth; Fiscal policy; Government size References [1] U.F. Akpan, D.E. Abang, “Does government spending spur economic growth? Evidence from Nigeria”, Journal of Economics and Sustainable Development. 4(9) (2013) 36-52. [2] E. Abounoori, Y. Nademi, Government Size Threshold and Economic Growth in Iran (No. 259600001). EcoMod. [3] O.F. Altunc, C. AydÕn, “The Relationship between Optimal Size of Government and Economic Growth: Empirical Evidence from Turkey, Romania and Bulgaria”, Procedia-Social and Behavioral Sciences. 92 (2013) 66-75.[4] H. Aly, M. Strazicich, “Is Government Size Optimal in the Gulf Countries of the Middle East? An empirical investigation”, International Review of Applied Economics. 14 (2000) Số trang.[5] S. Asimakopoulos, Y. Karavias, “The impact of government size on economic growth: A threshold analysis”, Economics Letters, S0165-1765(15) (2015) 00519-4. [6] R.J. Barro, Government spending in a simple model of endogeneous growth, Journal of political economy. 98 (5, Part 2) (1990) S103-S125. [7] IMF, “Public expenditure reform: Making difficult choices”, chapter 2, 2014.[8] P.V. İyidoğan, T. Turan, Government Size and Economic Growth in Turkey: A Threshold Regression Analysis, Prague Economic Papers, 26 (2) (2017) 142-154. [9] G. Karras, On the optimal government size in Europe: theory and empirical evidence, The Manchester School. 65(3) (1997) 280-294. [10] D.C. Mueller, Public choice: an introduction, In The encyclopedia of public choice, Springer, Boston, MA, 2004, pp. 32-48. [11] P. Pevcin, Does optimal size of government spending exist?, University of Ljubljana. 10 (2004) 101-135. [12] R. Ram, Government size and economic growth: A new framework and some evidence from cross-section and time-series data, The American Economic Review. 76(1) (1986) 191-203. [13] U.F. Akpan, D.E. Abang, “Does government spending spur economic growth? Evidence from Nigeria”, Journal of Economics and Sustainable Development. 4(9) (2013) 36-52. [14] E. Abounoori, Y. Nademi, Government Size Threshold and Economic Growth in Iran (No. 259600001). EcoMod. [15] O.F. Altunc, C. AydÕn, “The Relationship between Optimal Size of Government and Economic Growth: Empirical Evidence from Turkey, Romania and Bulgaria”, Procedia-Social and Behavioral Sciences. 92 (2013) 66-75.[16] H. Aly, M. Strazicich, “Is Government Size Optimal in the Gulf Countries of the Middle East? An empirical investigation”, International Review of Applied Economics. 14(4) (2000) số trang.[17] D. Anderson, “Investment and Economic Growth”, World Development, 1990, pp. 1057-1079.[18] S. Asimakopoulos, Y. Karavias, “The impact of government size on economic growth: A threshold analysis”, Economics Letters. S0165-1765(15) (2015) 00519-4. [19] R.J. Barro, Government spending in a simple model of endogeneous growth, Journal of political economy. 98 (5, Part 2) (1990) S103-S125. [20] W. Chinnakum et al, Factors affecting economic output in developed countries: A copula approach to sample selection with panel data, International Journal of Approximate Reasoning, 2013. [21] M. Fay, O. Charlotte, “Urbanization without growth: A not-so-uncommon phenomenon”, Policy Research Working Paper, no. 2412: The World Bank, 2000.[22] IMF, “Public expenditure reform: Making difficult choices”, chapter 2, 2014.[23] P.V. İyidoğan, T. Turan, Government Size and Economic Growth in Turkey: A Threshold Regression Analysis, Prague Economic Papers. 26(2) (2017) 142-154. [24] G. Karras, On the optimal government size in Europe: theory and empirical evidence, The Manchester School. 65(3) (1997) 280-294. [25] A.R. Kira, The Factors Affecting Gross Domestic Product (GDP) in Developing Countries: The Case of Tanzania, European Journal of Business and Management. 5 (2013) 2222-1905. [26] M. Machado et al, “Economic Development and Economic Variables: An analyze of Emergent Countries”, Social Science Research Network, 2015. [27] D.C. Mueller, Public choice: an introduction. In The encyclopedia of public choice, Springer, Boston, MA, 2004, pp. 32-48. [28] H.O. Onchari, The relationship between public expenditure and economic growth in Kenya, University of Nairobi, 2013. [29] P. Pevcin, Does optimal size of government spending exist?, University of Ljubljana. 10 (2004) 101-135. [30] D. Potts, “Challenging the Myths of Urban Dynamics in Sub-Saharan Africa: The Evidence from Nigeria”. World Development, 2012, pp. 1382-1393.[31] R. Ram, Government size and economic growth: A new framework and some evidence from cross-section and time-series data, The American Economic Review. 76(1) (1986) 191-203. [32] P. Romer, “Increasing Returns and Long-Run Growth”, Journal of Political Economy. 94 (1986) 1002-1037.[33] R.M. Solow, “A Contribution to the Theory of Economic Growth”, The Quarterly Journal of Economics. 70 (1956) 65-94.[34] P. Upreti, Factors Affecting Economic Growth in Developing Countries, Major Themes in Economics, 2015.

The Size and Performance of Public Sector Activities in Europe: An Overview*

2006 ◽  
Vol 56 (4) ◽  
pp. 399-422 ◽  
Author(s):  
Heinz Handler ◽  
Bertrand Koebel ◽  
J. Philipp Reiss ◽  
Margit Schratzenstaller
Keyword(s):  
Public Sector ◽  
Economic Performance ◽  
Size Structure ◽  
Empirical Literature ◽  
Size Of Government ◽  
The Public ◽  
Public Sector Reforms ◽  
The Us ◽  
Sector Performance ◽  
And Performance

Obvious differences between countries regarding their economic performance have led to the question whether the size, structure, and organisation of the public sector contribute to cross-country income levels and growth gaps. Public sector activities may have an effect on overall productivity and economic growth via two channels: directly, through the level and changes of productivity within the public sector, and indirectly, by triggering off productivity changes in private production. This paper is concerned with the former aspect. It provides an overview of recent empirical literature on public sector performance and relates performance to the size and structure of the public sectors in Europe, the US and Japan. The results are not fully conclusive, but seem to attribute more efficiency to smaller rather than to larger government sectors. Public sector reforms aiming to consolidate the size of government are likely to enhance the sector's own productivity and are thereby prone to contribute positively to overall economic performance.

scholarly journals The Importance of the Public Sector in Sustainable Development in Poland

2018 ◽  
Author(s):  
Agnieszka Alińska ◽  
Beata Zofia Filipiak ◽  
Aneta Kosztowniak
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Public Sector ◽  
Natural Resources ◽  
Financial Institutions ◽  
Financial Sector ◽  
Public Authorities ◽  
The Public ◽  
The Government

The striving for sustainable development has become the goal of actions undertaken not only by representatives of public authorities and institutions representing this sector, but also representatives of private entities who are increasingly recognizing the benefits and sources of long-term development based on the principles and objectives of sustainable development. These are mainly based on the pursuit of synergy in the three basic areas of activities, i.e., in the economic, social, and environmental dimensions as well as in the maintenance of natural resources. The implementation of these activities is connected with the necessity of incurring financial expenditures, which the government (public sector) does not have in the required value. Therefore, in the process of sustainable development for which the government is responsible, the active participation of the financial sector (banks) is necessary. Achieving results within the alliance of the concept of sustainable development requires the setting of a kind of contract, the parties of which are the government, society, and financial institutions. The purpose of the conducted research is to indicate by which means the government can stimulate economic growth towards its sustainable development. 

scholarly journals The Importance of the Public Sector in Sustainable Development in Poland

2018 ◽  
Vol 10 (9) ◽  
pp. 3278 ◽  
Author(s):  
Agnieszka Alińska ◽  
Beata Filipiak ◽  
Aneta Kosztowniak
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Public Sector ◽  
Natural Resources ◽  
Financial Institutions ◽  
Financial Sector ◽  
Public Authorities ◽  
The Public ◽  
The Government

The striving for sustainable development has become the goal of actions undertaken not only by representatives of public authorities and institutions representing this sector, but also representatives of private entities who are increasingly recognizing the benefits and sources of long-term development based on the principles and objectives of sustainable development. These are mainly based on the pursuit of synergy in the three basic areas of activities, i.e., in the economic, social, and environmental dimensions as well as in the maintenance of natural resources. The implementation of these activities is connected with the necessity of incurring financial expenditures, which the government (public sector) does not have in the required value. Therefore, in the process of sustainable development for which the government is responsible, the active participation of the financial sector (banks) is necessary. Achieving results within the alliance of the concept of sustainable development requires the setting of a kind of contract, the parties of which are the government, society, and financial institutions. The purpose of the conducted research is to indicate by which means the government can stimulate economic growth towards its sustainable development.

scholarly journals Public finances, governance control and economic growth: a macroeconomic history approach

2019 ◽  
Vol 16 (1) ◽  
pp. 189-202
Author(s):  
Ola Honningdal Grytten
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Central Government ◽  
Transition Period ◽  
Political Influence ◽  
Public Governance ◽  
Continuous Growth ◽  
Public Finances ◽  
The Public ◽  
Government Sector

The size of the public sector is an important tool in public governance. Public sector size may fuel both economic growth and political influence over the economy. By compiling and processing data from different sources of public accounts the paper aims at mapping the development of key financial indicators for the Norwegian central government sector during the transition period from the mid 19th to the mid 20th century. The data enable us to give measures of the size of the public sector alone and compared to the overall economy. It is found that the sector started its continuous growth before politicians deliberately started to increase the sector’s size of the total economy. The paper also finds that an increase of the public sector often, but not always, reflects political economy regimes. Persistent growth in public finances as a tool for economic policy making did not take place before the introduction of the social-democratic regime in 1935. The paper also concludes that economic growth started before the growth in the public sector, suggesting that public sector growth might as well be a result of economic growth or vice versa.

Central Otago - Built on gold, growing on grass.

2014 ◽  
Vol 76 ◽  
pp. 15-23
Author(s):  
Barrie J. Wills
Keyword(s):  
Economic Growth ◽  
Land Use ◽  
National Economy ◽  
Local Community ◽  
Central Government ◽  
Future Generations ◽  
Economic Potential ◽  
District Council ◽  
Definition Of

A warm welcome to our "World of Difference" to all delegates attending this conference - we hope your stay is enjoyable and that you will leave Central Otago with an enhanced appreciation of the diversity of land use and the resilient and growing economic potential that this region has to offer. Without regional wellbeing the national economy will struggle to grow, something Central Government finally seems to be realising, and the Central Otago District Council Long Term Plan 2012-2022 (LTP) signals the importance of establishing a productive economy for the local community which will aid in the economic growth of the district and seeks to create a thriving economy that will be attractive to business and residents alike. Two key principles that underpin the LTP are sustainability and affordability, with the definition of sustainability being "… development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

Comparing The Principalship of Madrasah and Sekolah in The Decentralization Era

2016 ◽  
Vol 1 ◽  
pp. 24-35
Author(s):  
Saefudin A Safi'i
Keyword(s):  
Public Sector ◽  
School Leadership ◽  
Policy Development ◽  
Central Government ◽  
Good Governance ◽  
Ground Level ◽  
New Order ◽  
The Public ◽  
Centralized Management ◽  
Decentralization Policy

The downfall of the New Order Regime in 1998 brought about significant change to Indonesia’s public sector.  Law number 22 of 1999, further refined by Law 32 of 2004, provide legal bases for district governments to administer the public sector. The central government also introduces the notion of good governance through the promulgation of various regulations. For Madrasah however, decentralization policy failed to provide clear legal bases as to how it relates to district government. Law 32 of 2004 verse 10 article 3 retains the centralized management by the Ministry of Religious Affairs. This however does not exclude Madrasah from public demand of implementing the principle of good governance. This study analyses the dynamics of principal-ship both in the Sekolah and the Madrasah in the era of decentralization. By comparing two research sites, this study sought to create better understanding about the context by which the organization climate of two different schools are shaped, and how principals and teachers perceives the notion of school leadership in the light of most recent policy development. To do this, interviews were undertaken and questionnaire-based data collection was also conducted. The study found that in the ground level implementation of decentralization policy, Sekolah developed more rigorous leadership compared to that in the Madrasah. This research recommends the adoption of stronger regulation regarding principal-ship of Madrasahs in order to create an environment that is more in tune with the spirit of public service reforms.

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