Government Size and Economic Growth: Time-series Evidence for the United Kingdom, 1830-1993
نویسنده
چکیده
Author Contact: Wing Yuk, P.O. Box 37063 RPO, Vancouver, BC, Canada V5P 4W7. Tel: +1-604-782-8081; email: [email protected] Abstract This study considers the long-run relationship between government expenditure and economic growth for the United Kingdom over the period 1830 to 1993. The causality analysis allows for the effects of exports, and for the presence of complex structural breaks in the data. The results support the export-led growth hypothesis. Although support for Wagner’s Law is sensitive to the choice of sample period, there is evidence that GDP growth Granger-causes the share of government spending in GDP indirectly through exports’ share of GDP during the period 1870-1930.
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