Impact of government spending and investment on economic growth has been widely discussed in the literature. However, impact of government spending volatility and investment volatility has been less explored. Aim of this study is to investigate the impact of investment volatility and government spending volatility on economic growth for the world representative sample. Furthermore, this study, also conducted disaggregated analysis for developed and developing countries. The full sample consists of a panel of 82 countries and the data from 1999 to 2016. Generalized Method of Moments technique is applied to the panel data. Results show that government spending volatility has a negative impact on economic growth in case of full sample and developing countries while it has an insignificant impact in case of OECD countries. Moreover, this study also finds that investment volatility doesn’t have any impact on economic growth for full sample. However, there is very low level negatively significant impact in case of subsamples. Supervisor:- Dr. Muhammad Jehangir Khan