Libya's Government Spending Not Boosting Economic Growth, Shrinking May Be Key
The study analyzed Libya's government spending from 1970 to 2005 to see how it affected economic growth. They found that increasing government spending did not consistently lead to higher real output growth. In fact, the data suggested that economic growth actually influenced government spending, not the other way around. This means that Libya could improve its economic situation by reducing the size of government and limiting its involvement in the economy.