2021
DOI: 10.22158/jepf.v7n4p14
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Government Expenditure and Economic Growth in Sub-Saharan Africa

Abstract: 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 in… Show more

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Cited by 13 publications
(17 citation statements)
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“…This is linked to the fact that control of corruption, higher government effectiveness, efficiency, and quality of regulations, the rule of law, and voice and accountability improve the efficiency of economic resources, which, in turn, positively influences the enhancement and improvement of health outcomes. Our findings are consistent with those of Nawaz et al 185 , Nirola and Sahu 186 , and Wandeda et al 187 , who have also noticed similar results in their studies considering various economies. Moreover, the findings show that AIQ is effective in offsetting the negative effects of per capita energy consumption on life expectancy.…”
Section: Resultssupporting
confidence: 93%
“…This is linked to the fact that control of corruption, higher government effectiveness, efficiency, and quality of regulations, the rule of law, and voice and accountability improve the efficiency of economic resources, which, in turn, positively influences the enhancement and improvement of health outcomes. Our findings are consistent with those of Nawaz et al 185 , Nirola and Sahu 186 , and Wandeda et al 187 , who have also noticed similar results in their studies considering various economies. Moreover, the findings show that AIQ is effective in offsetting the negative effects of per capita energy consumption on life expectancy.…”
Section: Resultssupporting
confidence: 93%
“…In the vast majority of the literature, inflation is employed as one of the determinants of economic growth. Authors such as Kandil (2009), Tran (2021), Wandeda et al (2021) benefited from this variable for explaining the dynamics of economic growth. In our case, consumer prices annual growth rate (INF) is used as a proxy for inflation.…”
Section: Datamentioning
confidence: 99%
“…Another study by Wandeda et al [ 21 ] claims that governance indicators, including political stability and absence of violence, regulatory quality, voice and accountability, corruption control, government effectiveness, and rule of law, have positive effects on economic growth in SSA. Similar findings were presented by AlShiab et al [ 39 ] in their studies across East Asia and Central Asia, the Pacific, Europe, and North American countries.…”
Section: Theoretical and Empirical Literaturementioning
confidence: 99%
“…Some of these studies contend that institutional quality has an impact on government policies, which in turn affect economic growth [ [16] , [17] , [18] ]. Some others attempt to link institutional quality indicators directly to economic growth [ 16 , [19] , [20] , [21] , [22] ], providing quite varying results. However, while these studies emphasize the importance of strong and better-performing institutions for economic growth, they are heavily biased towards general economic growth [ 20 , [22] , [23] , [24] , [25] ], with little attention paid to the agricultural sector exclusively.…”
Section: Introductionmentioning
confidence: 99%