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Productive Government Expenditure and Economic Performance in sub-Saharan Africa: An Empirical Investigation

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  • Hammed Adetola Adefeso

    (Department of Local Government Studies, Faculty of Administration, Obafemi Awolowo University, Ile-Ife, Nigeria)

Abstract

This study examined the effect of government expenditure on its disaggregated level on economic growth in a sample of 20 sub-Saharan African Countries over the period of 19802010 in a dynamic panel data model. The result from Generalised Method of Moments (GMM) revealed an inverse relationship between productive government expenditure and economic growth in sub-Sahara Africa. Also, productive government expenditures were not actually productive most especially when ?nanced by non-distortionary government tax revenue in sub-Saharan African countries. The study concluded that the productive government expenditure and its corresponding source of the mode of ?nancing were counterproductive for economic performance in the African countries. JEL Classification: C01; H00

Suggested Citation

  • Hammed Adetola Adefeso, 2016. "Productive Government Expenditure and Economic Performance in sub-Saharan Africa: An Empirical Investigation," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 19(2), pages 1-18, November.
    • Handle: RePEc:zag:zirebs:v:19:y:2016:i:2:p:1-18
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    More about this item

    Keywords

    Productive government expenditure; economic performance; GMM; non-distortionary taxation;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • H00 - Public Economics - - General - - - General

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