AN ANALYSIS OF OPTIMAL DEVOLVED GOVERNMENT SIZE FOR GROWTH: ARMEY CURVE IN KENYA

Journal Title: Brazilian Journal of African Studies - Year 2020, Vol 5, Issue 10

Abstract

This study, assuming a balanced budget, attempts to estimate the optimal size of devolved government expenditure in 47 Kenyan counties using the panel ARDL regression and Scully (2008) model for the period 2013-2017. The estimation model examined Armey’s idea of a quadratic curve that explains the level of government expenditure in an economy and the corresponding level of economic growth. The panel ARDL series analysis reveals that devolved government size is optimized when county expenditures stand at 9.7% of GCP (Gross County Product). The estimated threshold size is higher than the current size of county government in Kenya. The low level of devolved government size in counties reflects the low level of economic activities in Counties. This study therefore recommends that county governments should increase its spending budget on infrastructure, social and economic activities to 9.7% of GCP to stimulate overall county economic growth.

Authors and Affiliations

Naftlay Mose

Keywords

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  • EP ID EP692936
  • DOI https://doi.org/10.22456/2448-3923.98594
  • Views 160
  • Downloads 0

How To Cite

Naftlay Mose (2020). AN ANALYSIS OF OPTIMAL DEVOLVED GOVERNMENT SIZE FOR GROWTH: ARMEY CURVE IN KENYA. Brazilian Journal of African Studies, 5(10), -. https://europub.co.uk/articles/-A-692936