Shawn Ni, Author at Show-Me Institute https://showmeinstitute.org Where Liberty Comes First Fri, 01 May 2026 15:10:04 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://showmeinstitute.org/wp-content/uploads/2025/09/show-me-icon-150x150.png Shawn Ni, Author at Show-Me Institute https://showmeinstitute.org 32 32 A Review of Cross-Country Evidence on Government Fiscal Policy and Economic Growth https://showmeinstitute.org/publication/taxes/a-review-of-cross-country-evidence-on-government-fiscal-policy-and-economic-growth/ Wed, 01 Dec 2010 18:00:00 +0000 http://showmeinstitute.local/publications/a-review-of-cross-country-evidence-on-government-fiscal-policy-and-economic-growth/ It is widely believed that fiscal policy plays an important role in determining economic growth, but the specific policies that would best foster growth are hotly debated. This study provides […]

The post A Review of Cross-Country Evidence on Government Fiscal Policy and Economic Growth appeared first on Show-Me Institute.

]]> It is widely believed that fiscal policy plays an important role in determining economic growth, but the specific policies that would best foster growth are hotly debated. This study provides a review of the recent economic literature that examines the effect of government fiscal policy actions on economic growth. Because the effect of changes in tax and spending programs may take a long period of time to become evident, the findings of the studies reviewed here are based on data taken from across a large sample of countries. Despite the justifiable belief that fiscal policy does influence economic growth, interpreting the empirical evidence from aggregate cross-country data turns out to be less than straightforward. Even so, stepping back and considering the accumulated evidence reveals a robust conclusion from the data: Distortionary taxes on personal income or corporations have a strong negative effect on investment and, therefore, slow the rate of economic growth.



The post A Review of Cross-Country Evidence on Government Fiscal Policy and Economic Growth appeared first on Show-Me Institute.

]]>