Government spending boosts regional economies in the long run, study finds.
Government spending affects regional economic growth. A study from 2013 to 2017 shows a long-term relationship between spending and growth. Non-devolved spending impacts growth, and growth affects non-devolved spending in the short term. Capital and recurrent spending influence growth in one direction in the short term. Increasing government spending boosts regional economic growth over time without reducing the size of spending.