This article explores the relationship between public investment and growth among 56 low and middle income nations during the 1980s. The theoretical grwoth iterature emphasizes that initial increments of public capital raise growth but, at some point, additional increments of public capital...

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...