The paper sought to investigate the effect government expenditure on economic growth in Sub-Saharan Africa using a panel data for 35 Sub-Saharan African countries for the period 2006-2018. The paper adopted dynamic panel data and estimates were achieved by using two-step system GMM while taking into account the problem of instrument proliferation. The paper provided evidence that education and health expenditure are key determinants of income growth for SSA. The impact of education spending on cross-country income variation is more effective in low income SSA countries than the middle income SSA countries. However, military expenditure on output growth is more effective in improving income level of middle income SSA countries than low income SSA countries. SSA countries should allocate more funding towards education sector and should also avail compulsory and free primary and secondary education. SSA should carry out health reforms which improve primary health and universal health insurance coverage.

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In this article, the authors analyze the efficiency of public spending among Sub-Saharan African countries using a panel data for 23 Sub-Saharan Africa countries covering the period 2006-2018. This paper employs two-stage bootstrap output-oriented DEA approach. In addition, this study analyses the sources of distortions in public spending. Results show that the average biascorrected inefficiency score was 48 percent between 2006 and 2018 while the uncorrected inefficiency was 32.3percent. Institutional quality and domestic saving significantly influence the efficiency of public spending. Hence, there is need for Sub-Saharan African governments to observe fiscal discipline through strengthening of monitoring unit of government expenditure.

Aims: This study examines whether the long-run relationship between fiscal and current deficits follows the tenets of twin-deficits, the Ricardian equivalence, the current account targeting, or the feedback linkages. It further reviews the effects of fiscal and current account deficits on economic growth. These have in recent years been debated both in developed and developing countries.  In contributing to this ongoing debate, the authors applied unit root tests, cointegration analysis, a dynamic vector error correction model and Toda-Yamamoto Granger-causality representation using annual time series data from 1980 to 2016. Study Design: The study employs quantitative time-series research design by utilizing Stata econometrics software. Place and Duration of Study: Sample: Kenya, from 1980 to 2016. Methodology: The study employs unit root tests, Johansen (1995) co-integration analysis, a dynamic vector error correction model and a multivariate Toda-Yamamoto (1995) Granger-causality representation. Results: The paper provides evidence of unidirectional causality running from fiscal deficit to current account deficit in support of the twin-deficits phenomenon for Kenya. There is evidence that in the long-run fiscal deficits has significant negative effects while current account deficits had significant positive effects, on economic growth in Kenya.  Conclusion: Overall, the study concludes that the twin-deficits phenomenon fits for Kenya. The findings imply that the authorities need to pay more attention and promote policies that improve investment efficiency arising from these deficits. Importantly, some of the key policy implications include promotion of policies that upscale fiscal discipline and reduce the size of fiscal deficits for external stability and long-term economic growth, in Kenya.

Aims: The paper attempts to examine the effects of primary budget deficits on economic growth. It reviews the nature and direction of causality between primary budget deficit and economic growth. In the recent years, these have been debated both in developed and developing countries. In contributing to this ongoing debate, the study analyzes the case for Kenya from 1980 to 2016. The evidence is intended to provide policy insights for macroeconomic stability and sustained  economic growth for shared prosperity in Kenya. Study Design: The study employs quantitative time-series research design by utilizing Stata econometrics software. Place and Duration of Study: Sample: Evidence from Kenya, from 1980 to 2016. Methodology: The study employs unit root tests, Johansen cointegration analysis, a dynamic vector error correction model and a multivariate Toda-Yamamoto Granger-causality representation. Results: The findings establish that the primary budget deficit, gross fixed capital formation, real interest rate, terms of trade, inflation growth and financial innovation have significant effects on GDP per capita growth in Kenya. Primary budget deficit has a strong and significant effect on GDP per capita growth both in short-run and long run. In the short-run, the results revealed that the primary budget deficit had a positive effect on economic growth which turned negative in the long-run. There was a unidirectional causality running from primary budget deficit to economic growth.  Conclusion: The study concludes that both in the short run and long run, primary budget deficit has strong and significant causal effects on economic growth in Kenya. The evidence underscores the need for the authorities to reduce high primary budget deficits, interest payments and domestic borrowings and strictly apply the golden rule of public finances to boost long term inclusive growth, in Kenya.