Analysis of the Impacts of Government Expenditure Components on the Development and welfare: Comparative Analysis of Selected Developed and Developing Countries

Nowadays, aims such as development, social welfare, structural and infrastructure developments and achieving economic growth by benefiting from government expenditure have become one of the main concerns of the countries. It asks for reviewing the role of government in economy all over the world. This study, investigated the effects of the components of government expenditures on Components development and welfare in Selected Developed and Developing Countries during the period of 1996-2010, by using panel data approach.The results show that although public, social and economic expenditures have a positive impact on development and welfare in developed countries, but just the social expenditure has a statistically significant effect. Regarding the developing countries, the results show the positive impact and significant effect of public and economic expenditures on development and welfare of these countries. But despite of being positive, the Coefficient of social expenditure is not significant statistically. Also the findings reveal that defense expenditures in both groups of countries have a significant and negative impact.