The nonlinear impact of government consumption expenditure on economic growth: Evidence from low and low-middle income countries

References

• Armey, D. (1995). The freedom revolution: Why big government failed, why freedom works, and how we will rebuild America. Washington, DC: Regnery.
   Google Scholar
• Bai, J. (1997). Estimating multiple breaks one at a time. Econometric Theory, 13, 315–352.10.1017/S0266466600005831
   Web of Science ®Google Scholar
• Barnum, D. T., Gleason, J. M., & Hemily, B. (2008). Using panel data analysis to estimate DEA confidence intervals adjusted for the environment. Journal of Transportation Engineering, 134, 215–223.10.1061/(ASCE)0733-947X(2008)134:5(215)
   Web of Science ®Google Scholar
• Barro, R. J. (1988). Government spending in a simple model of endogenous growth. National Bureau of Economic Research Working Paper, No. 2588.10.3386/w2588
   Google Scholar
• Barro, R. J. (1990). Government spending in a simple model of endogenous growth. Journal of Political Economy, 98, 103–125.10.1086/jpe.1990.98.issue-S5
   Web of Science ®Google Scholar
• Blanchard, O. J. (1985). Debt, deficits, and finite horizons. Journal of Political Economy, 93, 223–247.10.1086/jpe.1985.93.issue-2
   Web of Science ®Google Scholar
• Cameron, G., Proudman, J., & Redding, S. (2005). Technological convergence, R&D, trade and productivity growth. European Economic Review, 49, 775–807.
   Web of Science ®Google Scholar
• Chan, K. S. (1993). Consistency and limiting distribution of the least squares estimator of a threshold autoregressive model. The Annals of Statistics, 21, 520–533.10.1214/aos/1176349040
   Web of Science ®Google Scholar
• Charnes, A., Cooper, W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2, 429–444.10.1016/0377-2217(78)90138-8
   Web of Science ®Google Scholar
• Chen, S.-T., & Lee, C.-C. (2005). Government size and economic growth in Taiwan: A threshold regression approach. Journal of Policy Modeling, 27, 1051–1066.10.1016/j.jpolmod.2005.06.006
   Web of Science ®Google Scholar
• Chiou-Wei, S.-Z., Zhu, Z., & Kuo, Y. H. (2010). Government size and economic growth: An application of the smooth transition regression model. Applied Economics Letters, 17, 1405–1415.10.1080/13504850902984295
   Web of Science ®Google Scholar
• Choi, I. (2001). Unit root tests for panel data. Journal of International Money and Finance, 20, 249–272.10.1016/S0261-5606(00)00048-6
   Web of Science ®Google Scholar
• Coelli, T., Rao, D. P., & Battese, G. (1998). An introduction to efficiency and productivity analysis. London: Kluwer.10.1007/978-1-4615-5493-6
   Google Scholar
• Dar, A. A., & AmirKhalkhali, S. (2002). Government size, factor accumulation, and economic growth: Evidence from OECD countries. Journal of Policy Modeling, 24, 679–692.10.1016/S0161-8938(02)00163-1
   Web of Science ®Google Scholar
• Davies, A. (2009). Human development and the optimal size of government. The Journal of Socio-Economics, 38, 326–330.10.1016/j.socec.2008.07.015
   Google Scholar
• De Witte, K., & Moesen, W. (2009). Sizing the government. Munich Personal RePEc Archive No. 14785.
   Google Scholar
• Fölster, S., & Henrekson, M. (2001). Growth effects of government expenditure and taxation in rich countries. European Economic Review, 45, 1501–1520.10.1016/S0014-2921(00)00083-0
   Web of Science ®Google Scholar
• Ghali, K. H. (1998). Government size and economic growth: Evidence from a multivariate cointegration analysis. Applied Economics, 31, 975–987.
   Web of Science ®Google Scholar
• Ghose, A., & Das, S. (2013). Government size and economic growth in emerging market economies: A panel co-integration approach. Macroeconomics and Finance in Emerging Market Economies, 6, 14–38.10.1080/17520843.2012.697075
   Google Scholar
• Ghosh, S., & Mourmouras, I. A. (2002). On public investment, long-run growth, and the real exchange rate. Oxford Economic Papers, 54, 72–90.10.1093/oep/54.1.72
   Web of Science ®Google Scholar
• Gupta, S., & Verhoeven, M. (2001). The efficiency of government expenditure experiences from Africa. Journal of Policy Modeling, 23, 433–467. Retrieved from http://www.sciencedirect.com/science/article/pii/S0161893800000363
   Web of Science ®Google Scholar
• Guseh, J. S. (1997). Government size and economic growth in developing countries: A political-economy framework. Journal of Macroeconomics, 19, 175–192.10.1016/S0164-0704(97)00010-4
   Web of Science ®Google Scholar
• Gwartney, J. D., Lawson, R. A., & Holcombe, R. G. (1998). The size and functions of government and economic growth. Washington, DC: Joint Economic Committee.
   Google Scholar
• Hansen, B. E. (1996). Inference when a nuisance parameter is not identified under the null hypothesis. Econometrica, 64, 413–430.10.2307/2171789
   Web of Science ®Google Scholar
• Hansen, B. E. (1997). Inference in TAR models. Studies in Nonlinear Dynamics and Econometrics, 2, 1–14.
   Web of Science ®Google Scholar
• Hansen, B. E. (1999a). Threshold effects in non-dynamic panels: Estimation, testing, and inference. Journal of Econometrics, 93, 345–368.10.1016/S0304-4076(99)00025-1
   Web of Science ®Google Scholar
• Hansen, B. E. (1999b). Testing for linearity. Journal of Economic Surveys, 13, 551–576.10.1111/1467-6419.00098
   Google Scholar
• Hausman, J. A. (1978). Specification tests in econometrics. Econometrica, 46, 1251–1271.10.2307/1913827
   Web of Science ®Google Scholar
• Herath, S. (2012). Size of government and economic growth: A nonlinear analysis. Economic Annals, LVII, 7–30.
   Google Scholar
• Heritage Foundation, Index of Economic Freedom. (2010). Heritage foundation economic freedom dataset. Retrieved from http://www.heritage.org/index/
   Google Scholar
• Kosempel, S. (2004). Finite lifetimes and government spending in an endogenous growth model. Journal of Economics and Business, 56, 197–210.10.1016/j.jeconbus.2003.08.002
   Google Scholar
• Laffer, A. (2004). The Laffer curve: Past, present, and future. Heritage Foundation Backgrounder, No. 1765.
   Google Scholar
• Levin, A., Lin, C., & Chu, C. (2002). Unit root tests in panel data: Asymptotic and finite sample properties. Journal of Econometrics, 108, 1–24.10.1016/S0304-4076(01)00098-7
   Web of Science ®Google Scholar
• Loizides, J., & Vamvoukas, G. (2005). Government expenditure and economic growth: Evidence from trivariate causality testing. Journal of Applied Economics, 8, 125–152.
   Web of Science ®Google Scholar
• Maddala, G. S., & Wu, S. (1999). A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61, 631–652.10.1111/obes.1999.61.issue-S1
   Web of Science ®Google Scholar
• Mitchell, D. J. (2005). The impact of government spending on economic growth. Heritage Foundation Backgrounder, No. 1831.
   Google Scholar
• Mourmouras, I. A., & Lee, J. E. (1999). Government spending on infrastructure in an endogenous growth model with finite horizons. Journal of Economics and Business, 51, 395–407.10.1016/S0148-6195(99)00014-4
   Google Scholar
• Pesaran, M. H. (2012). On the interpretation of panel unit root tests. Economics Letters, 116, 545–546.10.1016/j.econlet.2012.04.049
   Web of Science ®Google Scholar
• Ram, R. (1986). Government size and economic growth: A new framework and some evidence from cross-section and time-series data. American Economic Review, 76, 191–203.
   Web of Science ®Google Scholar
• Romero-Ávila, D., & Strauch, R. (2008). Public finances and long-term growth in Europe: Evidence from a panel data analysis. European Journal of Political Economy, 24, 172–191.10.1016/j.ejpoleco.2007.06.008
   Web of Science ®Google Scholar
• Solow, R. M. (1957). Technical change and the aggregate production function. The Review of Economics and Statistics, 39, 312–320.10.2307/1926047
   Web of Science ®Google Scholar
• Vedder, R. K., & Gallaway, L. E. (1998). Government size and economic growth. Washington, DC: Joint Economic Committee.
   Google Scholar
• Westerlund, J., & Breitung, J. (2013). Lessons from a decade of IPS and LLC. Econometric Reviews, 32, 547–591.10.1080/07474938.2013.741023
   Web of Science ®Google Scholar
• Wu, S.-Y., Tang, J.-H., & Lin, E. S. (2010). The impact of government expenditure on economic growth: How sensitive to the level of development? Journal of Policy Modeling, 32, 804–817.10.1016/j.jpolmod.2010.05.011
   Web of Science ®Google Scholar