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Sub-Division Expenditures and Economic Growth in Europe Based on United Nation’s Classification of the Functions of Government

International Journal of Economic Practices and Theories

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Field Value
 
Title Sub-Division Expenditures and Economic Growth in Europe Based on United Nation’s Classification of the Functions of Government
 
Creator Boldeanu, Florin Teodor
Tache, Ileana
 
Subject Economics
Economic Growth, COFOG, Economic Crisis, Public Spending, Panel Data
C23, C33, H50
 
Description This paper analyzes the correlation between public expenditure for each individual sector and economic growth for 30 European countries over the period 1991 to 2012 using three econometric methods – ordinary least squares, least square dummy variable and generalized method of moments. In order to test the link between government spending and economic growth, the research uses the United Nation’s Classification of the Functions of Government. By analyzing the sub-branches of public spending, we arrived at the conclusion that most of the public expenditures negatively affected economic growth.  Also, the use of dummy variables showed that the recent economic crisis has had a negative effect on the sample states. The European integration didn’t have a big influence on economy, the GDP per capita growing with only 0.03%. The impact of public expenditure on economic growth is very important nowadays because the economic system was changed by the recent events, mainly the global economic crisis, the almost economic collapse of Greece and the European Union’s ageing and debt problems.
 
Publisher International Journal of Economic Practices and Theories
 
Contributor —
 
Date 2015-10-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ijept.org/index.php/ijept%20/article/view/Sub-Division_Expenditures_and_Economic_Growth_in_Europe_Based_on_United_Nation_Classification_of_the_Functions_of_Government
 
Source International Journal of Economic Practices and Theories; Vol 5, No 5 (2015): Special issue on Trends in Sustainable Business and Consumption; 435-446
2247 – 7225
 
Language eng
 
Relation http://www.ijept.org/index.php/ijept%20/article/view/Sub-Division_Expenditures_and_Economic_Growth_in_Europe_Based_on_United_Nation_Classification_of_the_Functions_of_Government/pdf