{"title":"Does Government Ideology Affect the Relationship Between Government Spending and Economic Growth?","authors":"Hazwan Haini, Pang Wei Loon","doi":"10.1111/1759-3441.12319","DOIUrl":null,"url":null,"abstract":"<p>This study examines whether government ideology affects the relationship between government spending and economic growth in eighty eight countries from 1975 to 2017 using dynamic panel estimators. Previous studies have overlooked the role of government ideology, which can influence economic policies such as government spending. The results show that government spending is negative and significant to economic growth, while left-wing governments are associated with economic growth. However, when moderating for government ideology, the findings show that the marginal effect of government spending is positive for right-wing governments, while the marginal impact of government spending is negative for left-wing governments. The results imply that government spending policies must be aligned with the respective government ideology in order to benefit from further economic growth. Policy implications are discussed.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":null,"pages":null},"PeriodicalIF":0.9000,"publicationDate":"2021-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/1759-3441.12319","citationCount":"5","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economic Papers","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/1759-3441.12319","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 5
Abstract
This study examines whether government ideology affects the relationship between government spending and economic growth in eighty eight countries from 1975 to 2017 using dynamic panel estimators. Previous studies have overlooked the role of government ideology, which can influence economic policies such as government spending. The results show that government spending is negative and significant to economic growth, while left-wing governments are associated with economic growth. However, when moderating for government ideology, the findings show that the marginal effect of government spending is positive for right-wing governments, while the marginal impact of government spending is negative for left-wing governments. The results imply that government spending policies must be aligned with the respective government ideology in order to benefit from further economic growth. Policy implications are discussed.
期刊介绍：
Economic Papers is one of two journals published by the Economics Society of Australia. The journal features a balance of high quality research in applied economics and economic policy analysis which distinguishes it from other Australian journals. The intended audience is the broad range of economists working in business, government and academic communities within Australia and internationally who are interested in economic issues related to Australia and the Asia-Pacific region. Contributions are sought from economists working in these areas and should be written to be accessible to a wide section of our readership. All contributions are refereed.
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