Current Issue
Volume
31
year
2025
Issue
2

Archive

AUTHOR'S GUIDELINES

ABSTRACT GUIDELINES

SUBMIT AN ARTICLE

SCIENTFIC AND RESEARCH PROFILE

PUBLICATION ETHICS

PEER REVIEW POLICY

ABSTRACTING AND INDEXING

EDITORIAL BOARD

INTERNATIONAL EDITORIAL BOARD

PUBLISHER


Economic Alternatives articles are published open access under a Creative Commons CC BY 4.0 user licence

ADDRESS OF THE EDITORIAL OFFICE

ISSN (print): 1312-7462
ISSN (online): 2367-9409
4 issues per year


The conceptions of the authors express their personal opinion and do not engage the editors of the journal.

The Editorial Board is committed to open science and free access to scientific publications.

No Article Processing Charges apply. The Publisher allows for immediate free access to the work and permits any user to read, download, copy, distribute, print, search, or link to the full texts of articles, crawl them for indexing, pass them as data to software, or use them for any other lawful purpose. 

Every manuscript received will be checked for plagiarism.

Typeset by:

UNWE Publishing Complex

Printed by:

UNWE Publishing Complex

The Relation Between Government Expenditures and Economic Growth: An Empirical Analysis in European Developing Countries Economic Alternatives
year
2025
Issue
2

The Relation Between Government Expenditures and Economic Growth: An Empirical Analysis in European Developing Countries

Abstract

The relationship between government expenditures and economic growth has become a significant consideration by many researchers in recent years, especially after the financial crisis of 2008-2009 and the spread of the COVID-19 pandemic. Therefore, earlier studies show different results regarding the impact of government expenditures on economic growth. The primary purpose of this study is to examine the impact of government expenditures on economic growth. Specifically, it aims to elucidate how a potential increase in government expenditure may influence overall economic growth. The study aims to deal with government expenditures over a long period, which includes data from 1995 to 2022. Econometric models are applied to test the impact of government expenditures on economic growth in developing European countries. To confirm the hypotheses, a comprehensive methodology based on several methods such as OLS, Fixed and Random Effects, Hausman Test, FMOLS, DOLS and GMM are applied. The results show a negative relationship between general government expenditures and economic growth, where the increase in government expenditures would have a negative effect on economic growth by -0.16% in developing European countries. Moreover, this study contributes to the governments of the respective countries by empirically investigating the correlation between government expenditures and economic growth.

Keywords

economic growth, COVID-19, Panel Data, Government Expenditures, Developing European Countries
Download EA.2025.2.04.pdf