Government spending and economic growth in ECOWAS: An asymmetric analysis

Olaoye, Olumide Olusegun; Eluwole, Oluwatosin Odunayo; Ayesha, Aziz; Afolabi, Olugbenga O.

doi:10.1016/j.jeca.2020.e00180

Cited by 41 publications

(36 citation statements)

References 58 publications

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“…On the other hand, it is directed towards sectors that do not have a significant impact on growth. This result conforms with the findings of Olaoye et al (2020). These authors found negative impacts of a positive public expenditure shock on real GDP in ECOWAS.…”

Section: Responses Of the Community Economies To Macroeconomic Shockssupporting

confidence: 92%

Economic and Monetary Integration in ECOWAS Countries: A Panel VAR Approach to Identify Macroeconomic Shocks

Ndongo¹,

Diop²

2021

WJAE

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This paper studies the impact of output, exchange rate, price, and economic policies (fiscal and monetary) shocks to Economic Community of West African States (ECOWAS) economies over the period 1977-2019. The results of the impulse response functions obtained from the panel VAR show that monetary policy shocks stimulate economic activity, whereas fiscal shocks lead to a contraction. Moreover, these economic policy shocks lead to an increase in the price level. Finally, they have opposite effects on the real exchange rate: a monetary policy shock leads to an appreciation of national currencies against the US dollar, while a fiscal innovation leads to a depreciation of these currencies. As for exchange rate and price shocks, they create inflation and consequently a decline in economic activity. Furthermore, the forecast error variance decomposition reveals that real exchange rate shocks contribute the most to future fluctuations in macroeconomic variables in ECOWAS countries. Moreover, a comparison of the impact on the two currency areas, West African Economic and Monetary Union (WAEMU) and West African Monetary Zone (WAMZ), shows the degree of asymmetry between the two areas. The analysis shows, on the one hand, that shocks are more persistent and significant in the WAMZ and, on the other hand, that except for real exchange rate shocks, the two zones respond asymmetrically to shocks emanating from the other variables.

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Section: Responses Of the Community Economies To Macroeconomic Shockssupporting

confidence: 92%

Economic and Monetary Integration in ECOWAS Countries: A Panel VAR Approach to Identify Macroeconomic Shocks

Ndongo¹,

Diop²

2021

WJAE

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“…Investment expenditure (capital expenditure) has a long-term effect, whereas routine expenditure has a short-term effect. If there are errors in making investment decisions (capital expenditures), it will have an impact on the current year and subsequent years (Olaoye et al, 2020).…”

Section: Resultsmentioning

confidence: 99%

“…Infrastructure includes social infrastructure (such as schools and hospitals) and economic infrastructure (such as network utilities) which includes energy, water, transportation, and digital communications (Olaoye et al, 2020). Presidential Regulation Number 122 of 2016 describes the types of priority infrastructure regulated by the government including transportation infrastructure, road infrastructure, irrigation infrastructure, drinking water infrastructure, waste water infrastructure, waste facilities, telecommunications and informatics infrastructure, electricity infrastructure, oil and gas infrastructure, educational facilities infrastructure, regional infrastructure, tourism infrastructure and health infrastructure.…”

Section: Introductionmentioning

confidence: 99%

Development of Infrastructure And Economic Growth of Papua Province

Munawaroh¹,

Haryanto

2021

Mediatrend

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Efforts are being make equitable development through accelerated infrastructure development by providing quality infrastructure facilities and services. The government continues encourage the development of damaged infrastructure in order to increase economic growth, especially areas do not have good access. The purpose this study is determine the effect of infrastructure development on economic growth Papua Province. This study uses panel data regression with the Random Effect Model. Infrastructure data used this study are road infrastructure, educational infrastructure, health infrastructure from 29 districts / cities period 2011-2018. The results is road infrastructure and educational infrastructure have a positive and significant influence economic growth, while health infrastructure have a positive but not significant effect economic growth Papua Province. The regional government must be increase the quantity and quality of teaching staff, services and health facilities at regions isolated.

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“…Tongurai, Vithessonthi, 2018 Banking sector Negative impact on the development of the agricultural sector (in countries with developed banking sector), but no impact on the development of the industrial sector. Facchini, Seghezza, 2018;Olaoye et al, 2020 Government expenditure…”

Section: Studiesmentioning

confidence: 99%

“…The phenomenon of asymmetry between public spending and growth in the West African economic community (Olaoye et al, 2020) shows that in this group of countries, the response of economic growth to public spending shocks varies depending on the nature of the shocks, i.e., the cumulative effect of expansionary public spending shocks on economic growth is positive and statistically significant. The cumulative effect of government spending cuts has a negative and statistically significant impact on economic growth.…”

Section: Studiesmentioning

confidence: 99%

Comparative structural analysis of economic growth in countries of the Eurasian Economic Union

Sukharev

Voronchikhina

2021

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Relevance. The development of the Eurasian Union means economic integration between its member countries (Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia). For more efficient coordination of this process, it is necessary to analyze national models of economic growth and adjust the Union’s economic policy accordingly. Research objective. The study aims to identify the national models of economic growth by applying the structural analysis method and building regression models of GDP growth. Data and methods. The study relies on the structural analysis of GDP growth and regression analysis of the impact of macroeconomic policy instruments. Results. The study provides an overview of the research literature on the factors affecting economic growth (e.g. the financial structure, government expenditures. Based on the results of the structural analysis, a classification of the models of economic growth in terms of expenditures and sectors is proposed. This classification can be used to devise measures stimulating cooperation and integration within the Eurasian Union. Conclusions. The study has revealed the differences between the national models of economic growth by looking at each country’s reaction to the crises of 2009 and 2015. These differences correspond to the peculiarities of each country’s economic policy and need to be taken into account in the Union’s policy-making.

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Government spending and economic growth in ECOWAS: An asymmetric analysis

Cited by 41 publications

References 58 publications

Economic and Monetary Integration in ECOWAS Countries: A Panel VAR Approach to Identify Macroeconomic Shocks

Economic and Monetary Integration in ECOWAS Countries: A Panel VAR Approach to Identify Macroeconomic Shocks

Development of Infrastructure And Economic Growth of Papua Province

Comparative structural analysis of economic growth in countries of the Eurasian Economic Union

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