The article explores the effects of public expenditures on growth among 73 countries over the 1970-89 period. While much of the literature attributes weak growth to public investment and social expenditures which inhibit growth through crowding-out and rent-seeking, the article highlights the...

Capital flight undermines economic growth and the effectiveness of debt relief and foreign aid, and sometimes drains more resources from poor countries than does debt service. In an analysis of a large panel of developing and emerging market countries using annual data for 1970-2001, we show...