The Centre is pleased to announce the acceptance and publication in the Journal of International Money and Finance a paper co-authored by MMPM Director, Dr Donghyun Park.
The paper is titled “Public spending and inclusive growth: A cross-country empirical analysis” and was co-authored with Gazi Salah Uddin (Linkoping University, Sweden), Anh H. Le (Goethe University Frankfurt, Germany), Md. Bokhtiar Hassan, (Islamic University, Bangladesh) and John Beirne (Asian Development Bank).
We investigate the effects of different components of government spending on inclusive growth. More specifically, we consider the inclusive impact of public spending on environmental protection, health, education, housing, and social protection. For our empirical analysis, we apply panel regressions and local projections to a comprehensive database of 191 countries between 1980 and 2023. Our evidence indicates that equity-promoting government spending reduces income inequality, as measured by the Gini index, and improves human development indicators. Moreover, our analysis reveals that poorer households benefit disproportionately.
Read the paper at this link .
