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The goal of this paper is to understand better, at the empirical level, how public spending contributes to growth by focusing on both the level and composition of public spending, in connection to the dynamics of GDP per capita growth. It attempts to answer two specific questions: (a) What are the policy conditions under which public spending contributes positively to growth? and (b) What are the public spending components that have a stronger and longer-lasting impact on growth? The analysis is applied to a sample of seven fast-growing developing countries: Korea, Singapore, Malaysia, Thailand, Indonesia, Botswana, and Mauritius, which have been among the top performers in the world in terms of GDP per capita growth during the period (1960-2006). The rationale for this country sample selection is twofold. The first hypothesis is that, given their positive growth achievements over a relatively long time period, perhaps it is more straightforward to establish a link to public spending in those countries. Second, it is expected that the findings of the analysis will provide lessons regarding the level and composition of public spending that can be useful for other countries where growth has been less rapid. Assessing what role public spending has played in a dynamic growth context may indeed be enlightening for other cases as well. The paper is structured as follows. The first section is an introduction that provides relevant facts and information about the seven countries during the period of analysis, based on seven individual country case studies. Section II presents the theoretical background behind the empirical analysis. Section III focuses on the empirical methodology, function specification, and variables selected. Section IV is dedicated to the results obtained with the cross-country analysis and some specific country results, as well as some comparisons with previous findings by other authors. Finally, Section V draws policy implications and concludes.

Allocation --- Composition of public spending --- Debt Markets --- Economic Theory and Research --- Finance and Financial Sector Development --- Fiscal policy --- Government expenditure --- Inequality --- Macroeconomics and Economic Growth --- Poverty Reduction --- Poverty reduction --- Pro-Poor Growth --- Public disclosure --- Public expenditure --- Public finance --- Public Sector Economics and Finance --- Public Sector Expenditure Analysis and Management --- Public spending --- Uncertainty

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The goal of this paper is to understand better, at the empirical level, how public spending contributes to growth by focusing on both the level and composition of public spending, in connection to the dynamics of GDP per capita growth. It attempts to answer two specific questions: (a) What are the policy conditions under which public spending contributes positively to growth? and (b) What are the public spending components that have a stronger and longer-lasting impact on growth? The analysis is applied to a sample of seven fast-growing developing countries: Korea, Singapore, Malaysia, Thailand, Indonesia, Botswana, and Mauritius, which have been among the top performers in the world in terms of GDP per capita growth during the period (1960-2006). The rationale for this country sample selection is twofold. The first hypothesis is that, given their positive growth achievements over a relatively long time period, perhaps it is more straightforward to establish a link to public spending in those countries. Second, it is expected that the findings of the analysis will provide lessons regarding the level and composition of public spending that can be useful for other countries where growth has been less rapid. Assessing what role public spending has played in a dynamic growth context may indeed be enlightening for other cases as well. The paper is structured as follows. The first section is an introduction that provides relevant facts and information about the seven countries during the period of analysis, based on seven individual country case studies. Section II presents the theoretical background behind the empirical analysis. Section III focuses on the empirical methodology, function specification, and variables selected. Section IV is dedicated to the results obtained with the cross-country analysis and some specific country results, as well as some comparisons with previous findings by other authors. Finally, Section V draws policy implications and concludes.

Allocation --- Composition of public spending --- Debt Markets --- Economic Theory and Research --- Finance and Financial Sector Development --- Fiscal policy --- Government expenditure --- Inequality --- Macroeconomics and Economic Growth --- Poverty Reduction --- Poverty reduction --- Pro-Poor Growth --- Public disclosure --- Public expenditure --- Public finance --- Public Sector Economics and Finance --- Public Sector Expenditure Analysis and Management --- Public spending --- Uncertainty

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The global financial crisis has reignited interest in counter-cyclical fiscal policy as a critical instrument to provide immediate economic stimulus. But policy makers are also increasingly interested in how fiscal policy will impact growth and poverty over a longer run horizon, knowing that any quick responses to exogenous shocks also affect income generation and distribution. Those effects are less well known, however, and their dynamics still represent a challenge for many countries. In this book the authors explore methodological advances and new practices for fiscal policy implementation

Economic development. --- Financial crises -- Developing countries. --- Fiscal policy -- Developing countries. --- Fiscal policy --- Financial crises --- Economic development --- Political Science --- Law, Politics & Government --- Public Finance --- Development, Economic --- Economic growth --- Growth, Economic --- Economic policy --- Economics --- Statics and dynamics (Social sciences) --- Development economics --- Resource curse

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In 2003 the World Bank, in partnership with the Government of the People's Republic of China, began a one year-long global learning process that focused on worldwide efforts to reduce poverty along different dimensions. A series of case studies, multi-country interactive videoconferences, online dialogues, and field visits led up to the working conference in Shanghai, on May 25 - 27, 2004. Development lessons and experiences were shared and debated at this event by policymakers, politicians, donors, academics, development practitioners, civil society groups, and representatives from developmen

Social policy --- Social costs. Social benefits --- Third World: economic development problems --- Developing countries --- Poverty --- Economic assistance --- Economic development projects --- Development projects, Economic --- Projects, Economic development --- Technical assistance --- Destitution --- Wealth --- Basic needs --- Begging --- Poor --- Subsistence economy

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Although many studies indicate that both the level and composition of public spending are significant for economic growth, the results in the empirical literature are still mixed. This paper studies the importance of country sample selection and expenditure classification in explaining these conflicting results. It investigates a set of fast-growing countries versus a mix of countries with different growth patterns. The regression specifications include different components of public expenditure and total fiscal revenues, always considering the overall government budget constraint. Total public spending is first disaggregated using a definition that classifies public spending as productive versus unproductive components, an a priori criterion that is based on the expected impact of public spending items on the private sector production function. After empirically confirming the validity of this definition in the panel analysis, the authors suggest and test an alternative definition of "core" public spending that may be more appropriate for developing countries. The empirical analysis shows that the link between growth and public spending, especially the productive and "core" components, is strong only for the fast-growing group. In addition, macroeconomic stability, openness, and private sector investment are significant in the fast-growing group, which points to the existence of an economic policy environment more conducive to growth in the first group of countries. The authors conclude that public spending can be a significant determinant of growth for countries that are capable of using funds for productive purposes.

Achieving Shared Growth --- Business cycles --- Composition of public spending --- Debt Markets --- Economic growth --- Economic policy --- Expenditure --- Expenditure classification --- Expenditures --- Finance and Financial Sector Development --- Fiscal affairs --- Fiscal policy --- Government budget --- Government budget constraint --- Macroeconomic stability --- Macroeconomics and Economic Growth --- Poverty Reduction --- Private sector --- Private sector investment --- Public disclosure --- Public expenditure --- Public expenditures --- Public Sector Development --- Public Sector Economics --- Public Sector Expenditure Policy --- Public spending --- Subnational Economic Development --- Total public spending