EFFECT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN EAST AFRICA: A DISAGGREGATED MODEL
Journal Title: European Journal of Business and Social Sciences - Year 2014, Vol 3, Issue 8
Abstract
The goal of this research was to investigate empirically how government expenditure contributes to economic growth in East Africa. Most existing studies examining the relationship between expenditure and economic growth show conflicting results and mainly focus on aggregate expenditure. Hence this study focused on disaggregated expenditure over the period from 1980 to 2010. The objective of the study was to establish these expenditures that have effects on growth using balanced panel fixed effect model. Employing LLC test, this study tested for panel unit root and found that only GDP was stationary at level. The findings showed that expenditures on health and defense to be positive and statistically significant effect on growth. In contrast, education and agriculture expenditure were insignificant. This study suggests that for East Africa, the policy of increasing spending on health and defence budget to promote economic growth will be appropriate, but fewer funds should be channeled towards other sectors.
Authors and Affiliations
Naftaly Gisore| Department of Economics and Public Policy, Technical University of Kenya. Department of Economics, Egerton University, 536 Njoro, Kenya, Symon Kiprop| Department of Economics and Public Policy, Technical University of Kenya. Department of Economics, Egerton University, 536 Njoro, Kenya, Aquilars Kalio| Department of Economics and Public Policy, Technical University of Kenya. Department of Economics, Egerton University, 536 Njoro, Kenya, James Ochieng| Department of Economics and Public Policy, Technical University of Kenya. Department of Economics, Egerton University, 536 Njoro, Kenya, Lawrence kibet| Egerton University, Kenya
Keywords
Related Articles
- EP ID EP10516
- DOI -
- Views 286
- Downloads 22
WOMEN’S PARTICIPATION IN LOCAL GOVERNMENT: A TOOL FOR SUSTAINABLE DEVELOPMENT OF BANGLADESH
Empowerment or participation of women in governing process through gender sensitive particular policies are prerequisite for achieving sustainable development in any developing country such as Bangladesh. Such issue h...
CREATING AND SUSTAINING ACTION LEARNING IN PHYSICS CLASSROOM
The study was conducted to find out the effect of action learning strategy on students’ academic achievement in Nigerian senior secondary school physics. A criterion sampling technique was used to select the sample...
RELATIONSHIP BETWEEN ORGANIZATIONAL COMMITMENT, EMPLOYEE ENGAGEMENT AND CAREER SATISFACTION: A CASE OF UNIVERSITY OF GUJRAT
This study is proposed to find out the relationship between Organizational Commitment (OC), Career Satisfaction (CS) and Employee Engagement (EE). The purpose of the study was to create awareness in employees about Ca...
THE REFLECTIONS OF HEALTH SPENDING ON THE COMMUNITY HEALTH: COMPARATIVE ANALYSIS OF EMERGING COUNTRIES
In the current economic system, efficient usage of limited resources has gained more importance. Besides enhancing the life quality especially in the health care, the efficient usage of the resources has come into pro...
THE MARKETING OF SMALL AND MEDIUM ENTERPRISE (SME) PRODUCTS BASED ON FOOD PROCESSING
This study aims to examine the constraints and the method of product marketing for Small and Medium Enterprises (SMEs ) based on food processing in the district of Manjung . The study was conducted among the operators...