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Public spending efficiency on human capital and income inequality in selected African countries

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  • Isaiah Sikayena
  • Kwadwo Ankomah
  • Georgina Katakity
  • Frank Gyimah Sackey

Abstract

This study examines the relationship between the efficiency of public spending on human capital, specifically education and health and income inequality in Selected African Countries, using system GMM with robust standard errors over the period 2006-2017. The findings reveal that efficient public spending on health reduces income inequality, while efficient spending on education initially increases inequality, forming an 'n-shaped' relationship. However, after a certain threshold, further improvements in education spending efficiency help reduce inequality. Based on these findings, the study recommends that African governments, along with ministries of health and education, prioritise maintaining high efficiency in public spending to effectively address income inequality and foster equitable development across the continent.

Suggested Citation

  • Isaiah Sikayena & Kwadwo Ankomah & Georgina Katakity & Frank Gyimah Sackey, 2025. "Public spending efficiency on human capital and income inequality in selected African countries," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 10(3), pages 211-230.
    • Handle: RePEc:ids:ajesde:v:10:y:2025:i:3:p:211-230
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