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Competitio

Vol. 13 No. 1 (2014)
PhD student papers

Interdependence between government redistribution and economic growth in the long run

Published:
2014-06-16
DOI Linkhttps://doi.org/10.21845/comp/2014/1/9
Author
Levente Nadasi
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PDF (Hungarian)
Keywords
government redistribution economic growth public debt
How To Cite
Selected Style: APA
Nadasi, L. (2014). Interdependence between government redistribution and economic growth in the long run. Competitio, 13(1), 132-146. https://doi.org/10.21845/comp/2014/1/9
Abstract

The present paper aims to study changes in the degree of government redistribution with an institutional, historical, statistical and model-like approach. I investigate the impact of changes in redistribution on long-term economic growth in 30 European countries. It is generally stated that government spending/GDP ratio has been continuously increasing (in terms of trend) in Europe since the 1870s. I examine how the size of the states affects economic growth, and what other factors influence the long-run relationship between these two variables. My hypothesis is that in developed countries with high government
redistribution it has been an impediment to economic growth in the long run. Finally, I illustrate this hypothesis with a statistical analysis of 30 European countries.

Journal of Economic Literature (JEL) Classification: E66, H62, C10

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