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The Impacts of State Capital Management Programs on State Economic Performance
Author(s) -
SRITHONGRUNG ARWIPHAWEE
Publication year - 2008
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/j.1540-5850.2008.00912.x
Subject(s) - state (computer science) , public economics , economics , government (linguistics) , normative , capital (architecture) , panel data , economic capital , business , empirical research , economic growth , human capital , econometrics , political science , linguistics , philosophy , archaeology , epistemology , algorithm , computer science , law , history
Although the normative literature advocates systematic capital management practices, empirical studies investigating the tangible benefits of these practices are rare. Based on previous findings that public investment affects economic growth, this study extends the model of government spending and economic growth to investigate the effect of systematic capital management programs on state economic performance. Using panel data from 1997 to 2004 and the Government Performance Project's data on state capital management practices, the empirical results indicate that highly systematic capital management programs positively alter the relationship between the state's capital spending levels and the state's economic growth rate.