Size of government and economic growth in the largest Latin American country

Helder Ferreira de Mendonça, Thiago Cacicedo

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)

Abstract

This article provides empirical evidence regarding the effect of the size of government on economic growth in the Brazilian economy for the period from January 2000 to March 2013. In particular, an analysis is conducted to see whether the Armey curve fits well for the Brazilian case and the optimal government size is also estimated. The findings indicate that an increase in the size of government contributes to economic growth and that the optimal size for the Brazilian government would be approximately 22% of GDP. Brazil crossed over this limit in 2005.
Original languageEnglish
Article number904-910
JournalApplied Economics Letters
Volume22
Issue number11
DOIs
Publication statusPublished - 24 Jul 2015

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