Government Size and Economic Growth: The Case of Liberia

Since 1960, the size of the government in Liberia has grown considerably, while the rate of economic growth has declined. This study investigates whether growth in government size promotes or retards economic growth. The study finds that growth in the size of government has been associated with a slowdown in economic growth in Liberia over the period 1960-86. Thus, a lesser role of government in economic activity may be the best route towards economic growth and development in the country