Moreno-Dodson, Blanca2012-08-132012-08-132009-03https://hdl.handle.net/10986/11126While there are strong theoretical arguments for ways in which public spending influences growth, robust empirical links have been difficult to establish. More recently, many of the methodological problems that plagued the earlier literature have been overcome and interesting policy lessons drawn. The number of studies of developing countries using these new approaches is still limited, due to data scarcity and other comparability issues, but overall findings from the new literature are relevant for developing country policy makers and also open new venues for future research. The objective of this note is to present these new empirical results together with the methodological improvements that support them, and to outline some of the issues that need deeper analysis and empirical study, particularly in developing countries.CC BY 3.0 IGOACCOUNTINGACCOUNTING FRAMEWORKALLOCATIONBONDBUDGET ALLOCATIONSBUDGET BALANCEBUDGET CONSTRAINTBUDGET IMPLEMENTATIONBUDGET SIZEBUSINESS CYCLECAPITAL ACCUMULATIONCAPITAL EXPENDITURECAPITAL EXPENDITURESCAPITAL SPENDINGCAPITAL STOCKCAPITAL STOCKSCENTRAL BANKCLASSIFICATION OF EXPENDITURESCOMPOSITION OF PUBLIC SPENDINGCOUNTRY INITIALCOUNTRY REGRESSIONSCREATIVE ACCOUNTINGCROSS-COUNTRY ANALYSISDATA ANALYSISDATA AVAILABILITYDESCRIPTIVE STATISTICSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ECONOMICSDEVELOPMENT INDICATORSDYNAMIC PANELECONOMIC AFFAIRSECONOMIC DEVELOPMENTECONOMIC FLUCTUATIONSECONOMIC GROWTHECONOMIC POLICYECONOMIC STUDIESEMERGING MARKETSEMPIRICAL LITERATUREEMPIRICAL RESULTSEMPIRICAL STUDIESEMPLOYMENT EQUATIONSEXPENDITURE CLASSIFICATIONEXPENDITURE DECISIONSEXPENDITURE FUNCTIONSEXPENDITURE TRACKING SURVEYSEXPENDITURES ON HEALTHFINANCIAL STATISTICSFISCAL BUDGETFISCAL DEFICITSFISCAL DISCIPLINEFISCAL POLICIESFISCAL POLICYFISCAL PRUDENCEFISCAL REFORMSFISCAL RULESGOLDEN RULEGOVERNMENT BUDGETGOVERNMENT BUDGET CONSTRAINTGOVERNMENT EXPENDITUREGOVERNMENT EXPENDITURESGOVERNMENT FINANCINGGOVERNMENT SAVINGSGOVERNMENT SPENDINGGROWTH CONTEXTGROWTH EFFECTGROWTH IMPACTGROWTH MODELGROWTH RATEHEALTH CAREHOUSINGHUMAN CAPITALHUMAN DEVELOPMENTINDEPENDENT VARIABLESINFLATIONINFRASTRUCTURE INVESTMENTINFRASTRUCTURE INVESTMENTSINTEREST RATESINVESTMENT SPENDINGLAGGED VALUESLEVELS OF PUBLIC SPENDINGLONG RUNLONG-RUN GROWTHLONG-RUN IMPACTLOW INFLATIONMACROECONOMIC UNCERTAINTYMAINTENANCE OF ROADSMONETARY ECONOMICSNEGATIVE IMPACTNET CAPITALNET DEBTPANEL REGRESSIONSPER CAPITA GROWTHPOLICY IMPLICATIONSPOLICY ISSUESPOLICY MAKERSPOLICY RESEARCHPOLITICAL CONSIDERATIONSPOLITICAL ECONOMYPOSITIVE COEFFICIENTPOSITIVE IMPACTSPOVERTY REDUCTIONPRIVATE INVESTMENTPUBLICPUBLIC CAPITALPUBLIC CONSUMPTIONPUBLIC DEBTPUBLIC ECONOMICSPUBLIC EXPENDITUREPUBLIC EXPENDITURE TRACKINGPUBLIC EXPENDITURESPUBLIC FINANCESPUBLIC FUNDSPUBLIC INFRASTRUCTUREPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC SECTORPUBLIC SECTOR EFFICIENCYPUBLIC SERVICESPUBLIC SPENDINGRATIO OF PUBLIC SPENDINGROADSSAVINGSSIGNIFICANT EFFECTSIGNIFICANT IMPACTSOCIAL INFRASTRUCTURESOCIAL SECURITYSOCIAL SECURITY CONTRIBUTIONSTAXATIONTOTAL PUBLIC SPENDINGUNCERTAINTYWorld Bank10.1596/11126