In endogenous growth models, in contrast to the neoclassical growth models,
government expenditure and taxation have an effect on the long run growth rate. In
this thesis I examine whether the empirical evidence support the predictions of
endogenous growth models or the neoclassical growth models in relation to fiscal
policy. For this purpose I use panel data for fifteen European Union (EU) member and
thirty-three developing countries between the years 1970 and 1999. I specifically test
the following two propositions. The first proposition states that distortionary taxation
decreases growth while non-distortionary taxation does not. The second, states that
productive government expenditure increases growth while non-productive
expenditure does not. The empirical results are quite different between European Union countries and developing countries. The results do not support endogenous
growth especially for developing countries.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/1112127/index.pdf |
| Date | 01 January 2003 |
| Creators | Derin, Pinar |
| Contributors | Tansel, Aysit |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | M.S. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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