Solow, Edmund J. Sheehey, Alimi, R. Santos,
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Overview Abstract The new growth theory establishes, among other things, that government expenditure can manipulate the economic growth of a country. This study attempts to explain whether government expenditure increases or decreases economic growth in the context of Sri Lanka. Results obtained employing a productive output series and applying an analytical framework based on second degree polynomial regression are generally consistent with previous findings: government expenditure and economic growth are positively correlated; excessive government expenditure is negatively correlated with economic growth; and investment promotes growth.
The Freedom Revolution. Washington, D. This article adds to the literature indicating that the Armey curve is a reality not only for developed economies, but also for developing economies. Background Citation Herath, S. Size of government and economic growth: a nonlinear analysis. Economic Annals, 57 , Identity Digital Object Identifier doi Citation Herath, S.
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Size of government and economic growth: a nonlinear analysis
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