IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v32y2025i9p1306-1310.html
   My bibliography  Save this article

Navigating the economic landscape: a comprehensive analysis of government spending, economic growth, and poverty reduction nexus in Tanzania

Author

Listed:
  • Felician Andrew Kitole
  • Liberati John Msoma
  • Jennifer Kasanda Sesabo

Abstract

This study delves into the intricate nexus between government expenditure, GDP per capita, and poverty reduction in Tanzania. Employing Granger causality analysis, Vector Autoregressive (VAR) and Vector Error Correction Model (VECM) on the World Bank dataset spanning from 1990 to 2022 the study unveils dynamic relationships and crucial insights for policymaking towards poverty free society. The findings underscore significant directional causation between government expenditure and GDP, underscoring their pivotal roles in poverty alleviation. Furthermore, the study reveals that while an increase in gross domestic per capita initially reduces poverty, it exacerbates its prevalence in the long run. Conversely, government spending emerges as a consistent force in reducing poverty across both short and long-run periods. These results emphasize the imperative need for Tanzania and other developing nations to comprehend these interconnected factors, facilitating the formulation of effective strategies that foster inclusive growth and propel the nation towards sustainable development.

Suggested Citation

  • Felician Andrew Kitole & Liberati John Msoma & Jennifer Kasanda Sesabo, 2025. "Navigating the economic landscape: a comprehensive analysis of government spending, economic growth, and poverty reduction nexus in Tanzania," Applied Economics Letters, Taylor & Francis Journals, vol. 32(9), pages 1306-1310, May.
    • Handle: RePEc:taf:apeclt:v:32:y:2025:i:9:p:1306-1310
    DOI: 10.1080/13504851.2024.2302902
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2024.2302902
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2024.2302902?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:32:y:2025:i:9:p:1306-1310. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.