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Title: |
Government Size, Demographic Changes, and
Economic
Growth |
| Author: |
Lee, Bun Song;
Lin, Shuanglin |
| Author
Affiliation: |
U NE, Omaha |
| Source: |
International Economic Journal, Spring 1994, v. 8, no. 1, pp. 91-108 |
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Publication Date: |
Spring 1994 |
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Abstract: |
This paper examines the effect of
government size on the growth rate of per capita output by incorporating
demographic variables. Evidence from more than 86 countries suggests
that the demographic variables not only affect economic growth, but also
determine the size of government. Both the young and the old age
dependency ratios were positively related to the size of government,
while population density and population size were negatively related to
the size of government. Moreover, when the demographic variables are
included in the growth equations, the effect of government size on the
growth rate of per capita output became insignificant rather than, as
prior studies showed, significantly negative. |
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