Government size and growth : accounting for economic freedom and globalization

  title={Government size and growth : accounting for economic freedom and globalization},
  author={Andreas Bergh and Martin K Karlsson},
We examine the relationship between government size and economic growth, controlling for economic freedom and globalization, and using Bayesian Averaging over Classical Estimates in a panel of rich countries. Countries with big government have experienced above average increases in the KOF globalization index and in the Fraser institute’s Economic freedom index. To maintain comparability with earlier studies, we use two sample periods: 1970–1995 and 1970–2005. Government size robustly… CONTINUE READING

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