The document examines the impact of public spending on various sectors on economic growth in Kenya from 1972 to 2008. It finds that:
1) Spending on education had a highly significant positive impact on economic growth, while spending on economic affairs and transport/communication also had a positive impact, though weaker.
2) Spending on agriculture had a significant negative impact on economic growth.
3) Spending on health and defense did not have a significant impact on economic growth.
The findings did not fully conform to the authors' prior expectations about the relationship between public spending and economic growth. The document reviews other literature that has found mixed results on this relationship.
Abstract: The paper examines the impact of public sectoral expenditure on economic growth in Nigeria for the period 1981-2013. It was observed that the growth of government expenditure has not fully felt by the economy. The econometric methodology employed is the ARDL model and results show that while the impact of government expenditure on administration and debt servicing were positive on economic growth in the long and short run, expenditure on economic and social sectors has negative impact. We argue that this may not be unconnected with the high level of corruption prevalent in the public sector where funds that are meant for provision or maintenance of social-economic activities like agriculture, roads, transportations, schools and hospitals are diverted for personal use. The CUSUM and CUSUMSQ test show the model is stable as neither of them cross the 5% boundary. The paper recommended that government should increase expenditure to the social and economic sectors while debts or debt servicing should be reduced. Also, corruption so prevalent in the public sector must be minimized if cannot be eradicated.
Using time series data, this study investigated the effect of aggregated and disaggregated public spending on economic growth in Nigeria during the period 1980 – 2015. Time series data such as aggregated expenditure proxy by total federal government expenditure (TFGE), disaggregated expenditure proxy by recurrent expenditure (REXP) and capital expenditure (CEXP,) and economic growth proxy by GDP were obtained from central bank of Nigeria (CBN) statistical bulletin. Error Correction Model (ECM) was used to estimate the model. The result of the finding revealed that the total federal government expenditure (TFGE) and capital expenditure (CEXP) exerts positive and significant influences on GDP while recurrent expenditure (REXP) has a positive and insignificant influence on GDP. This implies that the higher the public spending, the higher the GDP. The researchers therefore, recommend that for sustainable Economic Growth (GDP), federal government should increase capital expenditure by allocating more funds to the productive sector of the economy. More so, the positive contributions of public spending to economic growth necessitate the continued use of fiscal policy instruments to pursue macroeconomic objectives in Nigeria.
Government Expenditure and Economic Growth Nexus: Empirical Evidence from Nig...iosrjce
This study has examined the impact of public expenditure on economic growth in Nigeria using time
series data for the period 1970-2012. Secondary data were sourced from the CBN, NBS, journals, text books
etc. The adopted model was fitted with three variables: real GDP, capital and recurrent expenditure. The tools
of analysis were the ADF unit root test and ordinary least square multiple regression accompanied by pairwise
Granger causality test. The major objective of this study is to analyse the impact as well as direction of
causality between the fiscal variables and economic growth. All the variables included in the model are
stationary at level. Empirical findings from the study show that there is positive and insignificant relationship
between capital expenditure and economic growth while recurrent expenditure had a significant positive impact
on economic growth. Also, Granger causality test demonstrates a unidirectional causality running from the
fiscal variables to economic growth in validation of the Keynesian theory. Consequently, the study
recommended more allocation of resources for recurrent purposes as well; government should establish the
body that will monitor contract awarding process of capital projects closely, to guard against over estimation of
project cost and stealing of public funds.
The main focus of this study is to investigate the impact of expansion in economic growth on
government expenditure in Nigeria covering the periods 1970 to 2012. Gross Domestic Product (GDP) was
used as a proxy for economic growth, and the GDP time series was decomposed using the partial sum approach
in order to achieve asymmetry in the variable. The asymmetric ARDL estimation technique was appropriately
employed in this study. The findings of this study revealed that expansion in economic growth has significant
impact on government expenditure in Nigeria. The study further provided evidence of long-run causality from
boom/expansion in economic growth to government expenditure in Nigeria but could not support any evidence
of short-run causality. The researcher recommended among others, that Governments in Nigeria should give
more impetus to policies that will guarantee sustainable economic growth.
Analysis of Public Investment Expenditure on Economic Growth in WAEMU Countriesinventionjournals
Public investment expenditure plays an important role in the economy to produce goods and services needed for economic development. This study analyzes the influence of public investment spending on the economic growth of the WAEMU zone. The study considers a linear approach through individual fixed effects models with Beck-Katz and Driscoll-Kraay corrections, the spatial autocorrelation model (SAC) and the longterm model (DOLS). The empirical results of the study using panel data covering the period 1990-2015 indicate that public investment spending can promote economic growth in WAEMU countries when they are allocated in decreasing order to Education, health, public investment in basic road infrastructure and agriculture. However, they are also likely to slow it down when they focus on military spending, even though their primary objective is to ensure security for economic development. Finally, the study recommends that policy makers in WAEMU countries refocus their public expenditure policies in key sectors of development, notably human capital, in order to ensure a multiplier effect of public spending on economic growth and strengthen institutions Democracy to ensure their independence through their interdependence.
Abstract: The paper examines the impact of public sectoral expenditure on economic growth in Nigeria for the period 1981-2013. It was observed that the growth of government expenditure has not fully felt by the economy. The econometric methodology employed is the ARDL model and results show that while the impact of government expenditure on administration and debt servicing were positive on economic growth in the long and short run, expenditure on economic and social sectors has negative impact. We argue that this may not be unconnected with the high level of corruption prevalent in the public sector where funds that are meant for provision or maintenance of social-economic activities like agriculture, roads, transportations, schools and hospitals are diverted for personal use. The CUSUM and CUSUMSQ test show the model is stable as neither of them cross the 5% boundary. The paper recommended that government should increase expenditure to the social and economic sectors while debts or debt servicing should be reduced. Also, corruption so prevalent in the public sector must be minimized if cannot be eradicated.
Using time series data, this study investigated the effect of aggregated and disaggregated public spending on economic growth in Nigeria during the period 1980 – 2015. Time series data such as aggregated expenditure proxy by total federal government expenditure (TFGE), disaggregated expenditure proxy by recurrent expenditure (REXP) and capital expenditure (CEXP,) and economic growth proxy by GDP were obtained from central bank of Nigeria (CBN) statistical bulletin. Error Correction Model (ECM) was used to estimate the model. The result of the finding revealed that the total federal government expenditure (TFGE) and capital expenditure (CEXP) exerts positive and significant influences on GDP while recurrent expenditure (REXP) has a positive and insignificant influence on GDP. This implies that the higher the public spending, the higher the GDP. The researchers therefore, recommend that for sustainable Economic Growth (GDP), federal government should increase capital expenditure by allocating more funds to the productive sector of the economy. More so, the positive contributions of public spending to economic growth necessitate the continued use of fiscal policy instruments to pursue macroeconomic objectives in Nigeria.
Government Expenditure and Economic Growth Nexus: Empirical Evidence from Nig...iosrjce
This study has examined the impact of public expenditure on economic growth in Nigeria using time
series data for the period 1970-2012. Secondary data were sourced from the CBN, NBS, journals, text books
etc. The adopted model was fitted with three variables: real GDP, capital and recurrent expenditure. The tools
of analysis were the ADF unit root test and ordinary least square multiple regression accompanied by pairwise
Granger causality test. The major objective of this study is to analyse the impact as well as direction of
causality between the fiscal variables and economic growth. All the variables included in the model are
stationary at level. Empirical findings from the study show that there is positive and insignificant relationship
between capital expenditure and economic growth while recurrent expenditure had a significant positive impact
on economic growth. Also, Granger causality test demonstrates a unidirectional causality running from the
fiscal variables to economic growth in validation of the Keynesian theory. Consequently, the study
recommended more allocation of resources for recurrent purposes as well; government should establish the
body that will monitor contract awarding process of capital projects closely, to guard against over estimation of
project cost and stealing of public funds.
The main focus of this study is to investigate the impact of expansion in economic growth on
government expenditure in Nigeria covering the periods 1970 to 2012. Gross Domestic Product (GDP) was
used as a proxy for economic growth, and the GDP time series was decomposed using the partial sum approach
in order to achieve asymmetry in the variable. The asymmetric ARDL estimation technique was appropriately
employed in this study. The findings of this study revealed that expansion in economic growth has significant
impact on government expenditure in Nigeria. The study further provided evidence of long-run causality from
boom/expansion in economic growth to government expenditure in Nigeria but could not support any evidence
of short-run causality. The researcher recommended among others, that Governments in Nigeria should give
more impetus to policies that will guarantee sustainable economic growth.
Analysis of Public Investment Expenditure on Economic Growth in WAEMU Countriesinventionjournals
Public investment expenditure plays an important role in the economy to produce goods and services needed for economic development. This study analyzes the influence of public investment spending on the economic growth of the WAEMU zone. The study considers a linear approach through individual fixed effects models with Beck-Katz and Driscoll-Kraay corrections, the spatial autocorrelation model (SAC) and the longterm model (DOLS). The empirical results of the study using panel data covering the period 1990-2015 indicate that public investment spending can promote economic growth in WAEMU countries when they are allocated in decreasing order to Education, health, public investment in basic road infrastructure and agriculture. However, they are also likely to slow it down when they focus on military spending, even though their primary objective is to ensure security for economic development. Finally, the study recommends that policy makers in WAEMU countries refocus their public expenditure policies in key sectors of development, notably human capital, in order to ensure a multiplier effect of public spending on economic growth and strengthen institutions Democracy to ensure their independence through their interdependence.
The spending allocation pattern of national governments varies depending on public policy for
desired effects but the outcome is rather controversial according to existing literature. This research aims to
explore the relationship between government expenditure, economic development and economic growth in
Brazil from 1994 to 2017. The Human Development Indicator (HDI) index is a representative measure of
economic development and is comprised of three dimensions:
An Analysis of the Relationship between Fiscal Deficits and Selected Macroeco...IOSR Journals
This study investigates the relationship that exists between the Government Deficit Spending and selected macroeconomic variables such as Gross Domestic Product (GDP), Exchange Rate, Inflation, Money Supply and Lending Interest Rate. The period covered is 1970 (when the civil war ended) and 2011. Ordinary Least Squares (OLS) technique was adopted to analyze the relationships. The study concludes that Government Deficit Spending (GDS) has positive significant relationship with GDP. Government Deficit Spending also has positive significant relationship with Exchange Rate, Inflation, and Money Supply. Government Deficit has negative significant relationship with Lending Interest Rate and most likely crowd-out the private sector by raising the cost of funds. Deficit spending has been known to have adverse effects on the economy and government is advised to curtail excessive deficit spending. It is recommended that further research is done to establish other variables that are affected by government deficit spending.
Effect of budget deficits on economic growthNigus Temare
The main objective of this study was to investigate the effect of budget deficit on economic growth in Ethiopia. For this purpose, the study used time series secondary data, and the data was extracted from the World Bank development indicators, Ministry of Finance, and National Planning and Development Commission of Ethiopia. The data covered a period running from 1994 to 2020.The study employed the Autoregressive Distributed Lag (ARDL) co-integration technique to determine the long and short-run relationship between budget deficit and economic growth. The findings resulted from modeling and analysis of the study showed that there exists a negative relationship between budget deficit and economic growth in Ethiopia and these results are consistent with the neoclassical economist schools of thought. Besides, the inflation rate is affecting the economic growth negatively and significantly whereas, government expenditure and trade openness affect the economy positively and statistically significant in the long run. On the other hand, the analysis in the short-run revealed that the budget deficit is positive but statistically insignificant. This indicates that budget deficit changes have no immediate effect on economic growth. The study suggested some policies which are important for the government of Ethiopia to avoid certain levels of the budget deficit to achieve the desired level of growth.
Government expenditure is a very instrumental demand tool in achieving economic stability and policy makers frequently use it to influence certain economic outcomes. Government expenditure majorly consists of two components: investment and consumption components. Many researchers concede that higher level of government consumption expenditure is growth retarding and therefore undesirable. The aim of this paper was to establish the economic determinants of government consumption expenditure in Kenya. The results showed that in the long-run, while 1USD increase in GDP causes USD1.3 increase in government consumption expenditure, a unit increase in inflation rate would cause USD1.8 increase in consumption expenditure. However, 1USD increase in foreign direct investment and external debt stock causes, respectively, USD 0.07 and USD 2.6 drop in government consumption expenditure. Corruption, democracy and political instability have positive effects on government consumption expenditure in Kenya. Urbanization and population dynamics jointly affect the variable in the short-run. This paper recommends that the government should strengthen its institutions that are mandated to deal with graft cases, create peaceful political setting at all times and ensure a friendly environment to foreign investors.
Revisiting the link between government spending and economic growth in the pr...iosrjce
This paper aims to revisit the link between government spending and economic growth in the present
of Wagner’s Law in Nigeria from 1972-2011. The examination is based on the functional form of Wagner Law
augmented by incorporating the square of GDP. We employed ARDL bound testing, combine cointegration and
Toda-Yamamoto non- Granger causality test in this study. Cointegration was found in both methods, and the
causality test supports the presence of Wagner’ Law. However, increase in GDP (i.e. Square of GDP) has an
adverse impact on economic growth. This shows that GDP as a proxy for economic growth has a certain point
from which, any additional increase will reduce government spending. Therefore, the government needs to come
up with programs that will motivate small and medium enterprises at all levels of government. Hence, the
increase in GDP in the long run, tend to reduce government expenditure, which in turn prevents deficit
financing
MEANING
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
Analysis of Public Investment Expenditure on Economic Growth in WAEMU Countriesinventionjournals
: Public investment expenditure plays an important role in the economy to produce goods and services needed for economic development. This study analyzes the influence of public investment spending on the economic growth of the WAEMU zone. The study considers a linear approach through individual fixed effects models with Beck-Katz and Driscoll-Kraay corrections, the spatial autocorrelation model (SAC) and the longterm model (DOLS). The empirical results of the study using panel data covering the period 1990-2015 indicate that public investment spending can promote economic growth in WAEMU countries when they are allocated in decreasing order to Education, health, public investment in basic road infrastructure and agriculture. However, they are also likely to slow it down when they focus on military spending, even though their primary objective is to ensure security for economic development. Finally, the study recommends that policy makers in WAEMU countries refocus their public expenditure policies in key sectors of development, notably human capital, in order to ensure a multiplier effect of public spending on economic growth and strengthen institutions Democracy to ensure their independence through their interdependence
Analysis Effect of Household Consumption, Private Investment and Regional Exp...AJHSSR Journal
ABSTRACT : This study aims to analyze the effect of household consumption, private investment and
regional expenditures on employment opportunities and regencies/city economic growth in the Province of Bali.
The research data uses panel data, which is a combination of 9 regencies/cities and 10 years of observations so
that 90 observations are obtained. Data sourced from BPS Bali Province and analyzed using path regression
analysis techniques. The results of the analysis found that there was a significant positive influence between
household consumption, private investment, and regional expenditures on employment opportunities. There is a
significant positive influence between the variables of household consumption, private investment, regional
expenditures and employment opportunities on economic growth. Employment opportunities are able to mediate
the influence of household consumption, private investment, and regional expenditures on the economic growth
of regencies/cities in Bali Province.
KEYWORDS : Household consumption, private investment, regional expenditures, employment opportunities,
economic growth.
The spending allocation pattern of national governments varies depending on public policy for
desired effects but the outcome is rather controversial according to existing literature. This research aims to
explore the relationship between government expenditure, economic development and economic growth in
Brazil from 1994 to 2017. The Human Development Indicator (HDI) index is a representative measure of
economic development and is comprised of three dimensions:
An Analysis of the Relationship between Fiscal Deficits and Selected Macroeco...IOSR Journals
This study investigates the relationship that exists between the Government Deficit Spending and selected macroeconomic variables such as Gross Domestic Product (GDP), Exchange Rate, Inflation, Money Supply and Lending Interest Rate. The period covered is 1970 (when the civil war ended) and 2011. Ordinary Least Squares (OLS) technique was adopted to analyze the relationships. The study concludes that Government Deficit Spending (GDS) has positive significant relationship with GDP. Government Deficit Spending also has positive significant relationship with Exchange Rate, Inflation, and Money Supply. Government Deficit has negative significant relationship with Lending Interest Rate and most likely crowd-out the private sector by raising the cost of funds. Deficit spending has been known to have adverse effects on the economy and government is advised to curtail excessive deficit spending. It is recommended that further research is done to establish other variables that are affected by government deficit spending.
Effect of budget deficits on economic growthNigus Temare
The main objective of this study was to investigate the effect of budget deficit on economic growth in Ethiopia. For this purpose, the study used time series secondary data, and the data was extracted from the World Bank development indicators, Ministry of Finance, and National Planning and Development Commission of Ethiopia. The data covered a period running from 1994 to 2020.The study employed the Autoregressive Distributed Lag (ARDL) co-integration technique to determine the long and short-run relationship between budget deficit and economic growth. The findings resulted from modeling and analysis of the study showed that there exists a negative relationship between budget deficit and economic growth in Ethiopia and these results are consistent with the neoclassical economist schools of thought. Besides, the inflation rate is affecting the economic growth negatively and significantly whereas, government expenditure and trade openness affect the economy positively and statistically significant in the long run. On the other hand, the analysis in the short-run revealed that the budget deficit is positive but statistically insignificant. This indicates that budget deficit changes have no immediate effect on economic growth. The study suggested some policies which are important for the government of Ethiopia to avoid certain levels of the budget deficit to achieve the desired level of growth.
Government expenditure is a very instrumental demand tool in achieving economic stability and policy makers frequently use it to influence certain economic outcomes. Government expenditure majorly consists of two components: investment and consumption components. Many researchers concede that higher level of government consumption expenditure is growth retarding and therefore undesirable. The aim of this paper was to establish the economic determinants of government consumption expenditure in Kenya. The results showed that in the long-run, while 1USD increase in GDP causes USD1.3 increase in government consumption expenditure, a unit increase in inflation rate would cause USD1.8 increase in consumption expenditure. However, 1USD increase in foreign direct investment and external debt stock causes, respectively, USD 0.07 and USD 2.6 drop in government consumption expenditure. Corruption, democracy and political instability have positive effects on government consumption expenditure in Kenya. Urbanization and population dynamics jointly affect the variable in the short-run. This paper recommends that the government should strengthen its institutions that are mandated to deal with graft cases, create peaceful political setting at all times and ensure a friendly environment to foreign investors.
Revisiting the link between government spending and economic growth in the pr...iosrjce
This paper aims to revisit the link between government spending and economic growth in the present
of Wagner’s Law in Nigeria from 1972-2011. The examination is based on the functional form of Wagner Law
augmented by incorporating the square of GDP. We employed ARDL bound testing, combine cointegration and
Toda-Yamamoto non- Granger causality test in this study. Cointegration was found in both methods, and the
causality test supports the presence of Wagner’ Law. However, increase in GDP (i.e. Square of GDP) has an
adverse impact on economic growth. This shows that GDP as a proxy for economic growth has a certain point
from which, any additional increase will reduce government spending. Therefore, the government needs to come
up with programs that will motivate small and medium enterprises at all levels of government. Hence, the
increase in GDP in the long run, tend to reduce government expenditure, which in turn prevents deficit
financing
MEANING
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
Analysis of Public Investment Expenditure on Economic Growth in WAEMU Countriesinventionjournals
: Public investment expenditure plays an important role in the economy to produce goods and services needed for economic development. This study analyzes the influence of public investment spending on the economic growth of the WAEMU zone. The study considers a linear approach through individual fixed effects models with Beck-Katz and Driscoll-Kraay corrections, the spatial autocorrelation model (SAC) and the longterm model (DOLS). The empirical results of the study using panel data covering the period 1990-2015 indicate that public investment spending can promote economic growth in WAEMU countries when they are allocated in decreasing order to Education, health, public investment in basic road infrastructure and agriculture. However, they are also likely to slow it down when they focus on military spending, even though their primary objective is to ensure security for economic development. Finally, the study recommends that policy makers in WAEMU countries refocus their public expenditure policies in key sectors of development, notably human capital, in order to ensure a multiplier effect of public spending on economic growth and strengthen institutions Democracy to ensure their independence through their interdependence
Analysis Effect of Household Consumption, Private Investment and Regional Exp...AJHSSR Journal
ABSTRACT : This study aims to analyze the effect of household consumption, private investment and
regional expenditures on employment opportunities and regencies/city economic growth in the Province of Bali.
The research data uses panel data, which is a combination of 9 regencies/cities and 10 years of observations so
that 90 observations are obtained. Data sourced from BPS Bali Province and analyzed using path regression
analysis techniques. The results of the analysis found that there was a significant positive influence between
household consumption, private investment, and regional expenditures on employment opportunities. There is a
significant positive influence between the variables of household consumption, private investment, regional
expenditures and employment opportunities on economic growth. Employment opportunities are able to mediate
the influence of household consumption, private investment, and regional expenditures on the economic growth
of regencies/cities in Bali Province.
KEYWORDS : Household consumption, private investment, regional expenditures, employment opportunities,
economic growth.
The paper examines the impact of public sectoral expenditure on economic growth in Nigeria for the period 1981-2013. It was observed that the growth of government expenditure has not fully felt by the economy. The econometric methodology employed is the ARDL model and results show that while the impact of government expenditure on administration and debt servicing were positive on economic growth in the long and short run, expenditure on economic and social sectors has negative impact. We argue that this may not be unconnected with the high level of corruption prevalent in the public sector where funds that are meant for provision or maintenance of social-economic activities like agriculture, roads, transportations, schools and hospitals are diverted for personal use. The CUSUM and CUSUMSQ test show the model is stable as neither of them cross the 5% boundary. The paper recommended that government should increase expenditure to the social and economic sectors while debts or debt servicing should be reduced. Also, corruption so prevalent in the public sector must be minimized if cannot be eradicated.
Budget Deficit and Economic Growth in Liberia: An Empirical InvestigationAJHSSR Journal
: This paper investigates the relationship between budget deficits and economic growth in Liberia.
The study employed: the Classical Ordinary Least Squares Technique (OLS); The Augmented Dickey Fuller
(ADF) and Phillip Perron unit root tests for stationarity; the Co-integration test using Engle-Granger Two-Step
procedure (EGTS); and a parsimonious Error Correction Model of the relationship between Budget deficit and
economic growth in Liberia. It is evident from the analysis that there exists a long run relationship between Budget
deficit and economic growth in Liberia. There also exists a positive and significant relationship between Budget
deficit and economic growth in Liberia. Therefore, a 1.0 percent increase in deficits will result in an increase of
approximately 0.42 percent in economic growth in Liberia. The study recommends that government, policy makers
and the monetary authorities should ensure an appropriate mix of monetary and fiscal policies such that would
deliberately and strategically maximize the growth potentials of deficits in Liberia.
JEL Classification : C2, E1, E2, O4, O5
KEYWORDS: Budget Deficit, Economic
Analyzing the Effect of Government Expenditure on Inflation Rate in Nigeria 1...ijtsrd
Nigeria is a developing economy with active participation of the federal government in various economic sectors not only to promote economic growth and development but also to instill fiscal and economic discipline in the economy. Government participation in the economy means greater funding of economic activities and this is expected to impact on economic indicators. This study analyses the effect of government expenditure on inflation rate in Nigeria within a period of 39 years spanning 1981 2019 . The study specifically seek to ascertain, determine, explore and assess the extent to which government expenditures on key sectors of agriculture, education, health and telecommunications respectively affect inflation rate in Nigeria. In line with the specific objectives of this study, four research questions are raised and four hypotheses duly formulated. Data used for this study were collected from the Central Bank of Nigeria CBN Statistical Bulletin. Government Expenditure on Agriculture GOA , Government Expenditure on Education GOE , Government Expenditure on Health GOH and Government Expenditure on Telecommunication GOT are the independent variables while inflation rate INF is the dependent variable. Descriptive statistics, diagnostic test employing the Augmented Dickey Fuller and a multivariate regression based on Johanson Cointegration and Error Correction Model ECM are used to analyze the data. Our findings indicate that government expenditures on education and agriculture have positive but insignificant effect on inflation rate and on the other hand, government expenditure on health and government expenditure on telecommunications have positive and significant effect on inflation rate. Based on our findings, the study recommends that government should increase its allocation to the health and education sectors to trigger increased skills and healthcare of economic operators for enhanced human capital development and economic productivity. Government should also provide adequate infrastructures to facilitate economic growth and reduce high inflation rate. Mbanefo, Patrick Amaechi | Atueyi, Chidi Leonard "Analyzing the Effect of Government Expenditure on Inflation Rate in Nigeria (1981-2019)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-2 , February 2022, URL: https://www.ijtsrd.com/papers/ijtsrd49237.pdf Paper URL: https://www.ijtsrd.com/management/management-development/49237/analyzing-the-effect-of-government-expenditure-on-inflation-rate-in-nigeria-19812019/mbanefo-patrick-amaechi
This paper examines whether the long-run relationship between budget and external deficits follows the
tenets of the twin-deficit hypothesis, the Ricardian equivalence hypothesis, the current account targeting
hypothesis, or the feedback linkages. It also evaluates the effects of budget and trade deficits on economic growth.
On a global perspective, these have been in the recent period debated in developed and developing nations. In
contributing to this ongoing debate, the study applied unit root tests, cointegration analysis, a dynamic vector
error correction model and a multivariate Toda-Yamamoto long -run Granger-causality representation using
annual time series data for Kenya from 1980 to 2016. There is evidence of unidirectional causality running from
budget deficit to external deficit in support of the twin-deficit hypothesis. In the long run, budget deficit had
significant positive effects while trade deficit had significant negative effects, on real GDP growth. Overall, the
findings suggest that the authorities should promote policies that upscale fiscal discipline, curb budget deficits for
external stability and long-term economic growth, in Kenya. The evidence underscores the need for more country
specific studies in sub-Saharan Africa.
Epistemic Interaction - tuning interfaces to provide information for AI supportAlan Dix
Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
As machine learning integrates deeper into human-computer interactions, the concept of epistemic interaction emerges, aiming to refine these interactions to enhance system adaptability. This approach encourages minor, intentional adjustments in user behaviour to enrich the data available for system learning. This paper introduces epistemic interaction within the context of human-system communication, illustrating how deliberate interaction design can improve system understanding and adaptation. Through concrete examples, we demonstrate the potential of epistemic interaction to significantly advance human-computer interaction by leveraging intuitive human communication strategies to inform system design and functionality, offering a novel pathway for enriching user-system engagements.
UiPath Test Automation using UiPath Test Suite series, part 4DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 4. In this session, we will cover Test Manager overview along with SAP heatmap.
The UiPath Test Manager overview with SAP heatmap webinar offers a concise yet comprehensive exploration of the role of a Test Manager within SAP environments, coupled with the utilization of heatmaps for effective testing strategies.
Participants will gain insights into the responsibilities, challenges, and best practices associated with test management in SAP projects. Additionally, the webinar delves into the significance of heatmaps as a visual aid for identifying testing priorities, areas of risk, and resource allocation within SAP landscapes. Through this session, attendees can expect to enhance their understanding of test management principles while learning practical approaches to optimize testing processes in SAP environments using heatmap visualization techniques
What will you get from this session?
1. Insights into SAP testing best practices
2. Heatmap utilization for testing
3. Optimization of testing processes
4. Demo
Topics covered:
Execution from the test manager
Orchestrator execution result
Defect reporting
SAP heatmap example with demo
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
Let's dive deeper into the world of ODC! Ricardo Alves (OutSystems) will join us to tell all about the new Data Fabric. After that, Sezen de Bruijn (OutSystems) will get into the details on how to best design a sturdy architecture within ODC.
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
UiPath Test Automation using UiPath Test Suite series, part 3DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 3. In this session, we will cover desktop automation along with UI automation.
Topics covered:
UI automation Introduction,
UI automation Sample
Desktop automation flow
Pradeep Chinnala, Senior Consultant Automation Developer @WonderBotz and UiPath MVP
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
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PHP Frameworks: I want to break free (IPC Berlin 2024)
11.does the composition of public expenditure matter to
1. Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.3, No.3, 2012
Does The Composition of Public Expenditure matter to
Economic Growth for Kenya?
John Mudaki * Warren Masaviru
School of Business and Economics, Moi University
P.O Box 39-30100, Eldoret, Kenya
Tel: +254 0722 426 863
*E-mail: mudakijohn@gmail.com
Abstract
There is often controversy and debate on the most appropriate way of allocating public funds
in Kenya, necessitating the need to investigate the effect of the composition of public
expenditure on economic growth. This study investigated the impact of public spending on
education, health, economic affairs, defense, agriculture, transport and communication on
economic growth with data spanning from 1972 to 2008. The data was differenced to make it
stationary then linearized for estimation using ordinary least squares. The findings showed
that expenditure on education was a highly significant determinant of economic growth while
expenditure on economic affairs, transport and communication were also significant albeit
weakly. In contrast, expenditure on agriculture was found to have a significant though
negative impact on economic growth. Outlays on health and defence were all found to be
insignificant determinants of economic growth. The findings did not conform to apriori
expectations.
Keywords: Economic Growth, Public Expenditure,
1.0 Introduction
In recent times Kenya has experienced numerous strikes from public servants agitating for
more pay alongside higher revenue allocations. The Doctor’s strike of December 2011 is a
remarkable example. The doctors were among other things demanding that the government
increases the budgetary allocation to the heath sector from the current 7 per cent to 15 per
cent of the national budget besides upgrading health facilities and investing in hospital
infrastructure to the tune of Kes 10 billion over a two year period and hiring more doctors.
The education sector has also been characterized by striking teachers demanding for more
pay and a bigger share of the national budget for investment in education related activities.
Inaddition, The Kenya Defence Forces engaged in a military pursuit of the Al-Shabaab
militia in the year 2011 and consequently demanded an even larger share of the national
budget. Nearly all sectors of the Kenyan economy demanded more budgetary allocations in
2011.This brought about the need to examine and determine the effect of sectoral budgetary
allocations on the national economy to generate the much needed information critical in
decision making and prioritizing expenditure.
In this quest to get further insights into the linkages between fiscal policies and economic
growth, more research should be done to identifying the elements of public expenditure that
have significant association with economic growth (Bose, Haque & Osborn, 2003).
Furthermore, existing studies on the linkages between public expenditure and economic
growth showed conflicting results. For instance, according to Ram (1986) and Romer (1989,
1990a, 1990b), there was a significant and positive relationship between public expenditure
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and economic growth. In contrast, Landau (1983, 1985, 1986), Grier & Tullock (1989),
Alexander (1990), Barro (1990, 1991) found a significant but negative relationship.
Kormendi & Meguire (1985), Levine & Renelt (1992) found the association between public
expenditure and economic growth to be insignificant. These conflicting findings highlighted
the importance of more research to identify the linkage between the composition of public
expenditure and economic growth for developping countries.
The very popular and widely acceptable theories of public expenditure are the Wagner’s law
of increasing state activities, Keynesian, Wiseman and Peacock’s theories. According to
Wagner (1883), causality runs from economic growth to public expenditure. The thrust of
Wagner’s Law is that as a country’s output increases, public expenditure increases as well
but at a much faster rate. Bağdigen & Çetintaş (2003) reaffirmed Wagner’s suggestions that
had shown that there was a relationship between the growth of a country’s output and public
expenditure and this relationship was in one direction; from the growth of country’s output to
public expenditure. According to Wagner (1883), public expenditure rises constantly for
most countries. It shows an upward sloping trend. In contrast, Keynes (1964) assumes that
causality runs from public expenditure to economic growth in times of recessions. The
Keynesian theory postulates that expansion of government spending accelerates economic
growth. The Wiseman and Peacock’s hypothesis says that there is usually considerable
increase in revenue to governments due to the economic developments over the years,
thereby leading to an increase in public expenditure. Wiseman & Peacock (1961) argue that
spending increases when governments spend to meet demands made by the population
regarding various services. Further during wars, tax rates are increased by the government to
generate more funds to meet the increase in defense expenditure; such an increase in revenue
therefore gives rise to government expenditure (Peacock & Wiseman, 1961).
The objective of this paper was to examine the impact of sectoral public expenditure on
economic growth for Kenya with an intention of establishing which specific components of
government expenditure had a significant impact on economic growth for the period of the
study. The study focused on establishing the linkages between public expenditure on
education, health, agriculture, transport and communication, economic affairs, defense,
manufacturing and economic growth. This disaggregated analysis was important from the
policy perspective. The results for the economic impact of sectoral public expenditures gave
rise to information that is critical for developing countries which are resource constrained and
therefore need to allocate the limited resources optimally. The paper was organized as
follows. In section the introduction is presented followed by a review of literature in section
2. In section 3 the econometric models to be estimated were specified and a presentation and
interpretation of the results made in section 4. Finally, recommendations and conclusions are
made in section 5.
2.0 Literature review
Keynes (1964) advocated for government spending to create jobs and employ capital that has
been unemployed or underutilized when an economy is in a downturn with high
unemployment of labor and capital. Keynes’s theory postulates that government spending is
needed to increase economic output and promote growth.
However, Stratmann & Okolski (2010) argued that there are many spending options for
governments who might not know where goods and services can be most productively
employed and therefore spending might not stimulate desired growth when it does not
accurately target the projects where it would be most productive. This information problem
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confounded by a non-progressive political process can stunt economic growth (Stratmann &
Okolski, 2010). Tullock (2010) was in agreement with Stratmann & Okolski (2010) and
suggested that incumbent politicians and bureaucrats seeking re-election try to gain control of
as much of the economy as possible and so preferentially allocate money arbitrarily to
favored groups rather than spend it where it would be most productive in an attempt to
maximize votes. Similarly, Wright (1974) found in his research to account for the differences
in per capita federal spending to the states during the Great Depression that instead of
allocating spending based purely on economic need during a crisis, the party in power may
distribute funding based on the prospect of political returns. Moreover, lobbying the
government for resources by interest groups and the private sector leads to misallocation of
resources. These political processes do not favor economic growth. Stratmann & Okolski
(2010) also argued that an increase in government spending crowds out private spending and
interest sensitive investment by increasing the tax burden on citizens either now or in the
future which leads to a reduction in private spending and investment. They further argued
that government spending reduces savings in the economy, thus increasing interest rates and
this could lead to less investment in productive sectors of the economy. Conversely, when
governments cut spending, there is a surge in private investment.
The fiscal multiplier is seen as a way that government spending can fuel growth. However,
Barro & Redlick (2009), Ramey (2009) found that in practice, unproductive government
spending is likely to have a smaller multiplier effect and that government spending may
actually decrease economic growth, possibly due to inefficient use of money. In fact, a large
pool of studies found no positive correlation between government spending and economic
growth. For instance, Mueller & Stratmann (2002) in a study of 76 countries, Akpan (2005)
and Laudau (1983), Wadal and Kamel (2009), Tomori and Adebiyi (2002), Fosu (2001) and
Adebiyi (2003) found a statistically significant but negative relationship between government
spending and economic growth.
However, Easterly & Rebelo (1993) in an examination of empirical data from approximately
100 countries from 1970-1988, Korman & Brahmasrene (2007) in their co-integration
analysis for Thailand, Donald & Shuaglin (1993), Gregorious & Ghosh (2007) and Gupta et
al.,(2002) found a positive correlation between general government investment and GDP
growth. Further, Donald and Shuanglin (1993) found that government expenditure on
education and defense had positive impact on economic growth. However, the effect of
welfare expenditure was insignificant and negative for the 58 sampled countries. Although
Wadad and Kamel (2009) found a short-run negative correlation between education and
economic growth, they found that in the long-run educational spending was a statistically
significant determinant of economic growth but found spending on defense was to be
insignificant both in the short–run and the long-run. Deger & Smith (1983), Knight et al.,
(1996) found similar results for defense.
In contrast, Devarajan et al. (1993), in their study of 140 OECD countries, found that
spending on education and defense did not have a positive impact on economic growth. It
was rather expenditure on health, transport and communication that was significantly and
positively related to economic growth. Similarly, Diamond (1989), Barro (1991), Easterly &
Rebelo (1993), Romer (1990), Folster & Henrekson (1999) found that government spending
was not a significant determinant of economic growth. In light of these findings, Barro and
Sala-i-Martin (1992) cautioned that government expenditure may be productive or
unproductive.
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Loto (2011) specified the growth model in equation 2.0 below to study the link between
government spending on Education (E), Health (H), Security (SEC), Agriculture (Ag) and
Transport & Communication (TC) on and economic growth for Nigeria:
g = α0 + α1E + α2H + α3SEC + α4Ag + α5TC + µ ………………………………………....2.0
His findings unlike those by Korman & Brahmasrene (2007), Donald & Shuaglin (1993),
Gregorious & Ghosh (2007) and Gupta et al.,(2002) showed that spending on education had a
negative and insignificant relationship with economic growth (attributed to brain drain) while
on the other hand health expenditure was found to be positively and significantly related to
economic growth. Further, Loto (2011) found government spending on security, transport
and communication was found to have a positive but insignificant impact on economic
growth. Spending on agriculture though found to be significant was negatively related to
economic growth.
Similarly, Bağdigen & Çetintaş (2003) examined the Wagner’s Law of long-run relationship
between public expenditure and GDP for the Turkish case over the period of 1965-2000
where public expenditure was supposed to be an outcome, but not a cause of growth in GDP.
Using the co-integration test and the granger causality test they found no causality in both
directions prompting them to conclude that neither Wagner’s Law nor Keynes hypothesis
was valid for the Turkish case. Yamak & Küçükkale’s (1997) found empirical evidence to
support the Wagner’s law of causality from economic growth to public expenditure for
Turkey. However, Demirbas’s (1999) found no evidence to support both the Wagner’s law
and Keynesian hypothesis for the Turkish case and therefore concluded that there was no
causation from economic growth to public expenditure or from public expenditure to
economic growth for Turkey.
Bose, Haque & Osborn (2003) examined the impact of public expenditure by sector on
economic growth for a panel of thirty developing countries paying attention to the
“sensitivity” issue arising from initial conditions and conditioning variables while also
avoiding the omission bias that may result from ignoring the full implications of the
government budget constraint. They found that education was the key sector to which public
expenditure should be directed in order to promote economic growth. This was contrary to
previous findings of negative or insignificant effects of education expenditure on economic
growth for developing countries by Landau (1986), Miller & Russek (1997) and Devarajan et
al. (1996). Secondly, they found that the share of government capital expenditure in GDP to
be positively and significantly correlated with economic growth, while the impact of
recurrent expenditure on economic growth was insignificant for their group of countries.
They also found that public expenditures in the defense, transport and communication sectors
had a significant impact on economic growth but became insignificant when they
incorporated the government budget constraint and other sectoral expenditures into their
analysis. The private investment share of GDP was significantly and positively related to
economic growth. There was strong evidence that a government budget deficit gave rise to
adverse growth effects.
3.0 Specification and Estimation of Econometric Models
The model used by Loto (2011) to estimate the impact of public expenditure on economic
growth for Nigeria was adopted for the Kenyan case. Loto (2011) designed a model similar to
the one used by Tsoukas & Miller (2003) and Manh & Terukazu (2006) who specified public
capital expenditure, public current expenditure, tax rate and technology as the determinant
factors of economic growth in a CES production function.
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The model that was estimated in this study is specified below:
RGDP = F (EXPEA, EXPED, EXPH, EXPDEF, EXPAGRI, EXPTRSPT, EXPMAN )… (3.1)
In log-linear form the model is specified as:
ln RGDPt = Lnß0 + ß1ln EXPEAt + ß2ln EXPEDt +ß3ln EXPHt + ß4ln EXPDEFt
+ ß5 ln EXPAGRI + ß6ln EXPTRPT + ß6 ln EXPMANt + εt………………… (2)
Where:
RGDP- Real Gross Domestic Product
EXPDEF-Expenditure on Defense
EXPEA-Expenditure on Economic Affairs
EXPH- Expenditure on Health
EXPE- Expenditure on Education
EXPTRPT-Expenditure on Transport & Communication
EXPAGRI-Expenditure on Agriculture
EXPMAN-Expenditure on manufacturing
3.1 Types and Sources of Data
The data set on public expenditures was obtained from the Kenyan Statistical Abstracts and
Economic Surveys published annually by the Central Bureau of Statistics and the Central
Government. These annual publications have established themselves as reliable sources of
data for the Kenyan Economy.
4.0 Presentation and Interpretation of Results
An empirical analysis of the relationship between economic growth, components of
government expenditure and other macroeconomic variables requires appropriate estimation
techniques for both the long run and short run analysis. However, this study takes the first
step to examine the properties of the time series and estimate the regression using ordinary
least squares. An analysis of the extent of cointegration between the variables and
investigating the long run and short run relationships between the variables will be taken up
in another study.
Using the Augmented Dickey Fuller (ADF) test, it was found that all the variables were non-
stationary at levels, thus leading us to test for stationarity at first differences, which showed
that all the variables were stationary at first difference at 1 per cent level of significance as
seen in table 1 below.
Table 1: Testing the Order of Integration by Applying Unit Root Test
Test Applied
*************************************************************************************
Variable Augmented Dickey Fuller (ADF) Phillip Peron (PP)
*************************************************************************************
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LNRGDP I(1)* I(1)*
LNEXPEA I(1)* I(1)*
LNEXPED I(1)* I(1)*
LNEXPH I(1)* I(1)*
LNEXPDEF I(1)* I(1)*
LNAGRI I(1)* I(1)*
LNEXPTRPT I(1)* I(1)*
LNEXPMAN I(1)* I(1)*
*************************************************************************************
Source: Authors’ Workings
Notes: i) * denotes the significance at 1% level; ii) LN stands for Natural Logarithms.
Both tests led to the conclusion that all the variables were integrated of order one I(1), which
means that the data are non-stationary at levels but stationary at first difference.
4.1 Regression Results
Ordinary least square was used to estimate the log-difference of RGDP on the independent
variables appearing in equation (1) above. The regression results are shown in the table 3
below:
Table 3:
Ordinary Least Squares Estimation
*********************************************************************************
Dependent variable is LNRGDP
36 observations used for estimation from 1973 to 2008
*********************************************************************************
Regressor Coefficient Standard Error T-Ratio [Prob]
CONSTANT 3.1737 .13169 24.1004[.000]
LNEXPEA .082283 .070095 1.1739[.250]
LNEXPED .94529 .045534 20.7601[.000]
LNEXPH .1937E-3 .032216 .0060124[.995]
LNEXPDEF -.0061434 .030429 -.20189[.841]
LNEXPAGRI -.084368 .039314 -2.1460[.041]
LNEXPTRPT .018818 .023145 0.81306[.423]
LNEXPMAN -.014871 .012304 -1.2086[.237]
********************************************************************************
R-Squared .99838 R-Bar-Squared .99798
S.E. of Regression .065109 F-stat. F (7, 28) 2469.0[.000]
Mean of Dependent Variable 12.1443 S.D. of Dependent Variable 1.4480
Residual Sum of Squares .11870 Equation Log-likelihood 51.7826
Akaike Info. Criterion 43.7826 Schwarz Bayesian Criterion 37.4485
DW-statistic 1.4849
*******************************************************************************
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Source: Authors’ Workings
4.2 Interpretation of Results
The findings showed that public expenditure on education was a highly significant and
positive determinant of economic growth with a very high t-ratio. A unit percentage increase
in expenditure on education will, loosely speaking, increase real gross domestic product by
about 0.95%. Expenditure on agriculture on the other hand was also found to be a significant
albeit negative determinant of economic growth which did not conform to the apriori
expectation of a positive linkage between agriculture and economic growth. The findings
showed that a unit percentage increase in expenditure on agriculture would reduce real gross
domestic product by about 0.08%.
Interestingly and unexpectedly expenditure on economic affairs, health, transport and
communication was found to positively but weakly matter to economic activity. Further,
outlays on defence and manufacturing were found to be not only negative but also
insignificant determinants of economic growth.
The value of R-Squared was extremely high (0.99838) suggesting that the variables included
in the model collectively explained 99.83% of all the determinants of economic growth. This
finding pointed towards the need to subject the data to even more robust statistical checks to
avoid spurious correlations. The Durbin Watson statistic was below the usually
recommended value of 2.0 which again pointed towards the probability of serial correlation
among the variables.
5 Conclusions and Recommendations
Before allocating resources governments should use the best peer-reviewed literature to
assess whether spending in that particular area is likely to stimulate growth. Unfortunately,
researchers investigating the link between sectoral public expenditure and economic growth
have found divergent results. This has confounded the problem.
Our findings showed that public expenditure on education is critical in enhancing economic
growth. This finding corresponded to findings by Donald and Shuanglin (1993), Wadad and
Kamel (2009), Deger & Smith (1983), Loto (2011) and Knight et al., (1996) but contrasted
those by Devarajan et al. (1993) for 140 OECD countries. From the findings, the authors
hasten to recommend increased expenditure on education as one of the key pillar/determinant
of economic growth for Kenya.
On the other hand the authors hesitate to recommend reduced government spending on
economic affairs, health, transport and communication which were found to be near
insignificant determinants of economic growth. Though expenditure on defence and
manufacturing were also found to be insignificantly related to economic growth, the authors
suspect that inadequate investments and inefficiencies, slow adoption of technology,
corruption & embezzlements in these areas led to this adverse finding. However, the authors
resort to economic theory to recommend increased spending in these sectors which remain
important pillars of the economy.
Increased outlays on agriculture though found to be significant but negatively related to
economic growth should guarantee national food security. This finding could have been
caused by an inefficient agricultural sector majorly focused on crop farming and not
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extensively mechanized. Despite this finding and on the basis of economic rationale more
resources should be channeled to the agricultural sector to make it more productive.
Expenditure on manufacturing was also found to be statistically insignificant, however,
manufacturing is arguably one of the most sang engine of economic growth and so we
exercise prudence and recommend more outlays to this sector. It is probable that this variable
was found to be insignificant because quality research and adequate resources are not
channeled to this sector not only in Kenya but also in other developing nations.
In summary and from the findings of this paper it becomes increasingly important to explore
further what portfolio of government outlays are ideal for growth to support resource
constrained governments on optimal resource allocation and prioritization of expenditure.
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EXTRACT OF DATA
Kshs Million
YEAR RGDP EXPEA EXPED EXPH EXPDEF EXPAGRI EXPTRPT EXPMAN
2008 2099798 154203.38 151676.86 36121.90 41209.46 28331.83 45677.67 535.89
2007 1825960 99037.84 124908.59 302282.54 36741.86 20460.30 31105.67 153.89
2006 1622434 71420.75 109238.90 27517.68 25122.90 14141.61 44478.40 568.90
2005 1415724 49488.64 96027.43 22963.79 31161.04 10610.70 18550.40 475.30
2004 1274311 47307.50 84726.31 16308.89 20979.25 10266.20 13507.30 879.40
. . . . . . . . .
. . . . . . . . .
. . . . . . . . .
. . . . . . . . .
. . . . . . . . .
. . . . . . . . .
. . . . . . . . .
1972 15052 731.96 807.56 255.46 238.92 250.62 639.42 51.56
Average 478824.03 24760.92 32379.51 15283.54 9405.94 6173.35 8397.72 1005.28
Source: Central Bureau of Statistics & Central Government
70
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