Transcription of PUBLIC SPENDING IN DEVELOPING COUNTRIES: …
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PUBLIC SPENDING IN DEVELOPING COUNTRIES: …
1 PUBLIC SPENDING IN DEVELOPING countries : TRENDS, DETERMINATION, AND IMPACT Shenggen Fan and Anuja Saurkar1 1. INTRODUCTION Government SPENDING patterns in DEVELOPING countries have changed dramatically over the last several decades. Thus, it is important to monitor trends in the levels and composition of government expenditures, and to assess the causes of change over time. It is even more important to analyze the relative contribution of various expenditures to production growth and poverty reduction, as this will provide important information for more efficient targeting of these limited and often declining financial resources in the future. There have been numerous studies on the role of government SPENDING in the long-term growth of national economies (Aschauer 1989; Barro 1990; Tanzi and Zee 1997). These studies found conflicting results about the effects of government SPENDING on economic growth.
4 Surprisingly, among the three regions, Africa spent the most as a percentage of GDP. Government spending as a percentage of GDP was …
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