Government Size and Social Capital in Developing Countries; New Empirical Evidence
Social capital is one of the most important subjects in development economics. It has a crucial role in development process in developing countries. To the best of our knowledge, there is no study about the importance of government size in social capital. Therefore, the purpose of this paper is considering the relationship between government size and social capital in 109 developing countries during the period of 2008-2014. To do so, we have used a panel data method based on the model of Knack and Keefer (1997). Estimated Results of a fixed effect panel model indicate that there is a non-linear relationship between government size and social capital. When the government size is small (the government size is less than 26.17%), increasing government size has a significant positive impact on social capital. However, when the government size is large (the government size is larger than 26.17%), government size has a significant negative impact on social capital. Before this threshold level of government size, due to preparing safe environment as well as social and economic institutions, ensuring property rights, providing public services as well as social security, building schools and universities, etc., expanding government leads to promoting social capital. But after this threshold level, because of inefficient expenditure, corruption and crowding out private investments in social capital, expanding government has a negative impact on social capital.
The study is an empirical test of the effects of different categories of government expenditure, revenue and deficits on economic growth in developing countries. It is based on panel data of annual series over the last three decades for 103 countries, which are further classified into low-income, high-income, mineral exports dependent, and foreign aid dependent groups. Our findings suggest that...متن کامل
Evaluation the Impact of Government Size on Economic Growth: A Comparison of Developed and Developing Countries
Due to the importance of the government size impact on economic growth, the current study investigates the impact of government size on economic growth in economies of the developed and developing countries by using a panel data approach over the period 1990-2010. The results indicate that government size has positive effect on economic growth and negative effect on per capita production growth...متن کامل
The World Bank defines social capital as the institutions, relationships and norms that shape the quality and quantity of a society’s social interactions. Social capital is a multi-faceted concept that implies emotional attachments to relatives and friends as well as interactions between people. Existing studies of transport and its impact on the rural poor in developing countries focus largely...متن کامل
An Investigation of the Impact of Government Size on Economic Growth: New Evidence from Selected MENA Countries
This paper investigates the impact of government size on economic growth in selected economies of the MENA countries by using a non-linear panel data approach over the period 1990-2011. The estimation results of Panel Smooth Threshold Regression model show that when the level of government consumption is very large, the positive impact of labor force on growth is intensified. On the other hand,...متن کامل
An Investigation of the Impact of Size of the Government on Economic Growth: Some New Evidence from OECD-NEA Countries
Abstract Achieving economic growth, as one of the essential purposes in each country, needs appropriate tracing of government as one of the important and effective sections in that economy. Nowadays, unlike the 80s, economists concentrate on objectives such as explanation of the relationship between size of the government and economic growth and delineation of optimum size of the government w...متن کامل
Investigating the Impact of Government Size on the Productivity of Labor and Capital Factors in the OPEC Islamic Countries
The role of government in influencing economic activity is undeniable, although it varies widely in economic systems. Productivity is one of the variables affecting government interventions and it greatly affects the overall competitiveness of the economy. This study investigates the effect of government size on labor and capital factor productivity in Islamic countries of OPEC during 2018 ...متن کامل
دوره 14 شماره 2
صفحات 193- 213
تاریخ انتشار 2017-08-23
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