Public expenditure, economic growth and poverty alleviation

Sasmal, Ritwik; Sasmal, Joydeb

doi:10.1108/ijse-08-2014-0161

Cited by 74 publications

(64 citation statements)

References 18 publications

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“…The effect of education expenditure was not significant but expenditure on infrastructure had significant negative influence on poverty level. Sasmal and Sasmal (2016) investigated the impact of public expenditure on economic growth and poverty alleviation in India using both fixed and random effects models. The findings disclosed that public expenditure on infrastructures such as road, power, irrigation, transport and communication was high as well as the per capita income and so the effect on poverty reduction was significant and positive.…”

Section: Foreign Studiesmentioning

confidence: 99%

Government Sectoral Expenditure and Poverty Alleviation in Nigeria

Omodero¹

2019

RWE

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Poverty alleviation in the developing countries has been an issue of concern especially in Africa which accounts for two-thirds of the total number of people in the world living in extreme poverty. The World Poverty Clock indicates that half of Nigerian population are dwelling in abject poverty, implying that MDGs agenda seems to be ineffective in Nigeria which is the giant of Africa. Thus, this study examines the role of government sectoral expenditure on poverty alleviation using a secondary form of data covering a millennium period from 2000 to 2017. The study employs ordinary least squares technique and the regression result indicates that government expenditure on agriculture, building and construction, education and health do not have any significant impact on poverty alleviation in Nigeria. The study therefore concludes that government spending on these key sectors of the economy is insufficient and recommends that more funds should be budgeted to boost these sectors in order to eradicate the scourge of poverty in the country.

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Section: Foreign Studiesmentioning

confidence: 99%

Government Sectoral Expenditure and Poverty Alleviation in Nigeria

Omodero¹

2019

RWE

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“…These findings further confirm that the poverty level could be reduced through long-term economic growth realized by stabilizing price level and providing more funds to the private sector in the short run Giri 2016a, 2016b). Having a prudent monetary policy to promote sustainable economic growth is a necessary pre-requisite for poverty alleviation (Sasmal and Sasmal 2016).…”

Section: Variance Decompositions Analysismentioning

confidence: 99%

Dynamics of Financial Development, Economic Growth, and Poverty Alleviation: The Indonesian Experience

Dewi¹,

Majid

Aliasuddin

et al. 2018

South East European Journal of Economics and Business

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Although the poverty rate in Indonesia has been declining in the last several years, the rate of poverty decline is slowing down. In order to achieve its poverty reduction target within the stipulated time period, the government has stepped up efforts to enhance the contribution of the financial sector towards poverty reduction. This study aims to empirically explore the interlinkages between financial sector development and poverty reduction in Indonesia. Focusing on annual data covering the period from 1980 to 2015, the study adopts the Autoregressive Distributed Lag (ARDL) cointegration approach to examine the long-run relationship between the variables. The study found that there is a long-run relationship between financial development, economic growth, and poverty reduction in Indonesia. It also documented a unidirectional causality running from the financial sector to poverty reduction and a bidirectional causality between economic growth and poverty reduction. Therefore, policies to ensure the conducive growth of the financial sector would go a long way in promoting the economy, creating employment opportunities, and consequently accelerating poverty eradication

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“…So, the nature of government spending and the composition of public expenditure are important for maintaining sustainability of fiscal balance. Source: Sasmal and Sasmal (2016) Time Series Analysis The results in Table 3 show that growth rate of the ratio of private capital to NNP at current prices and growth rate of NNP at constant prices are cointegrated. That means, there is meaningful long run relationship between them.…”

Section: Expenditure Pattern and Its Impact On Economic Growthmentioning

confidence: 99%

Government Spending With Public Debt, Economic Growth and Fiscal Balance: Evidences From India

Sasmal¹,

Sasmal²

2017

Proceedings of the 34th International Academic Conference, Florence

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This paper has examined the impact of public expenditure on economic growth and viability of fiscal policy when the public expenditure is financed by public borrowing. The ratio of gross fiscal deficit to net national product and the ratio of gross fiscal deficit to total expenditure have been considered as indicators of solvency in fiscal balance. The study is based on theoretical framework and results of econometric analyses. The basic argument of this paper is that if public expenditure is financed by government borrowing, but expenditure fails to generate sufficient growth in income, it will be difficult to repay the loan and fiscal balance will deteriorate. As a result, the viability of the fiscal policy will be under question. The data in the Indian context show that revenue expenditure has increased significantly over time. Since revenue expenditure includes many non-developmental and less productive components, it may not be helpful for economic growth. The results of time series analysis show that the ratio of gross fiscal deficit to net national product (NNP) has increased with increase in total expenditure of the government indicating non-sustainability of fiscal balance. The study also shows that private capital has significant positive impact on NNP but the effect of fiscal deficit on economic growth is not clear.

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Public expenditure, economic growth and poverty alleviation

Cited by 74 publications

References 18 publications

Government Sectoral Expenditure and Poverty Alleviation in Nigeria

Government Sectoral Expenditure and Poverty Alleviation in Nigeria

Dynamics of Financial Development, Economic Growth, and Poverty Alleviation: The Indonesian Experience

Government Spending With Public Debt, Economic Growth and Fiscal Balance: Evidences From India

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