تلخیص
In this paper, the spending patterns of developed countries of
the world are studied along with the identification of the effect
of public spending components on economic growth of these
developed economies. Public spending on health, education,
and defense are predictors and GDP growth rate is the outcome
variable in this research. Data from 41 developed countries,
from 2000 to 2015 is taken and after necessary diagnostic tests.
Least Square Regression is applied. Cluster Regression Model
(CRM) is also used for empirical analysis of the data. Results
of this study indicate that defense expenditures do not have a
significant effect on economic growth, whereas education
spending has a significant inverse effect on economic growth.
Public spending on health is found insignificant to predict
economic growth. It is concluded that spending on education is
the only variable, which affects economic growth but its impact
is also negative. This finding is contrary to the general
acceptance that spending on education results in economic
growth.
Ather Azim Khan, Abaid Ullah Shakir, Abdul Kareem, Syed Razwan Haider. (2018) Public Spending and Economic Growth: A Case Study of Developed Nations, Paradigms , Vol 12, Issue 1.
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