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Interest Groups, Public Expenditure, and Economic Growth: An Empirical Investigation

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Authors

Kim, Eunji; Kim, Sangheon

Issue Date
2011
Publisher
Graduate School of Public Administration, Seoul National University
Citation
Korean Journal of Policy Studies, Vol.26 No.3, pp. 147-159
Keywords
interest groupspublic expenditureeconomic growth
Abstract
Although many studies have dealt with the relationship between government expenditure and economic growth, none has been able to pinpoint its exact nature. Recently, however, new efforts have been made to find new factors or variables that moderate the relationship. This paper investigates a new
moderating variable, interest group activity, as suggested by Kim (forthcoming).
According to cross-country data analysis, the interaction term between government
expenditure and interest group activity plays a significant role. Government
expenditure has been estimated to have a positive effect on economic growth when interest groups are inactive, and a negative impact on growth when interest groups are active.
ISSN
1225-5017
Language
English
URI
https://hdl.handle.net/10371/75675
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