Public Spending (Moreno-Dodson and Bayraktar)

How public spending can help you grow: An empirical analysis for developing countries, by Blanca Moreno-Dodson and Nihal Bayraktar. Considering the full government budget constraint, the empirical analysis shows that public spending, especially its “core” components, contributes to economic growth only in countries that are capable of using funds for productive only in countries thar are capable of using for productive purposes.