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Theoretical and Applied Economics
No. 10 / 2014 (599)

How growth-friendly are productive public expenditures? An empirical analysis for Eastern Europe

Petru-Ovidiu MURA
West University of Timisoara

Abstract. This paper investigated the effects of productive public expenditures over economic growth, using a panel-model approach, in 6 East-European countries during 1990-2013. The paper contributes to the specific literature, showing how different types of productive public expenditures influence economic growth, under an extended set of economic and socio-political control variables. The findings revealed that education, R&D and infrastructure expenditure are positively correlated with economic growth, while health expenditure seems to have a negative impact.

Keywords: productive public expenditure, economic growth, correlation, fixed-effects, panel-model.

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