Revista Egitania Sciencia - Volume 1 | ARTICLE

Title: ECONOMIC GROWTH AND GOVERNMENT INTERVENTION: THE CASE OF PORTUGAL

Author: Constantino Mendes Rei
Docente da ESTG do Instituto Politécnico da Guarda
Publication: Revista Egitania Sciencia - Volume 1

Abstract:
In Portugal, the image of the public sector is associated with inefficiency and bad resource management, creating both a lack of concern and restraining economic growth. The aim of this paper, using co-integration and Granger causality tests, is to investigate the extent to which the Portuguese state and, in particular, the public sector have positively or negatively contributed to Portuguese economic growth, as measured by public expenses.
The first implication of these results sustains the government’s policy of reducing State involvement in the Portuguese economy. The inefficiency of the Portuguese public sector is revealed to be significant; inverting economic growth patterns to improve productivity will likely be obtained by transferring part of the state’s role to the private sector.


Keywords: Growth, Economie, Government, Portugal




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