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• Interdependence between government redistribution and economic growth in the long run

  132-146

  Levente Nadasi

  Views:

  174

  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

• Living memories of the past? The new wave of redistribution at the turn of the millenium

  83-104

  Eva Voszka

  Views:

  110

  Redistribution within the economy and the state owned companies subsidized by the government have become a major field of economics policy. The view of the daily press is misleading: it is not a brand new phenomenon. Redistribution was present during the whole transformation of the economy. The article analyses the distinctive features of a new wave started at the turn of the millennium and the central position of private enterprises showing the various methods, the ideologies providing their background and the driving forces. According to the article the factor and basic motivation of redistribution are independent of the political orientation of the ruling governments, it is only their approaches that vary. The support of domestic private enterprises is a failure concerning the direct political aims. Anf from sociological aspects it supports the old attitudes of the planned economy. We could not show clearly favourable economic effects but their chance depends on the method of redistribution. The conclusion of the article: the best support is the decrease of subsidies and the changing of the general economic possibilities into favourable ones for the players in the economy.