IDEAS home Printed from https://ideas.repec.org/p/dbm/wpaper/24-012.html
   My bibliography  Save this paper

The impact of public spending on water, sanitation and hygiene (WASH) adoption: Governance thresholds for complementary policies

Author

Listed:
  • Elvis D. Achuo

    (Dschang, Cameroon)

  • Simplice A. Asongu

    (Johannesburg, South Africa)

Abstract

Despite the global resolve to ensure the availability and sustainable management of water and sanitation, several people across the world still have very limited or no access to basic drinking water, sanitation and hygiene (WASH) services. Therefore, this study primarily examined the effect of public spending on WASH adoption. The moderating role of governance quality in the nexus among public spending and WASH adoption was equally assessed. The underlying relationships for a global panel of 45 countries over the 2000-2022 period are unravelled with the help of the system Generalised Method of Moments, Driscoll-Kraay robust standard errors and the generalised least squares estimation techniques. Results from various approaches show that public spending has a statistically significant negative effect on WASH adoption. Moreover, the interactive regressions show that public spending negatively interacts with governance to produce a negative net effect of -0.319. The underlying negative effects are apparent when some governance thresholds are exceeded. These thresholds are critical points that when reached, complementary policies are needed in order to maintain the unconditional positive effect of public spending on WASH adoption. It follows that the complementarity between public spending and governance is a sufficient and necessary condition for the promotion of WASH adoption exclusively below certain governance thresholds. Contingent on the empirical results, policymakers are advised to tailor public spending to more conveniently target local-based WASH initiatives in order to limit bureaucracy and broad-based policies. Besides, the local population should be endowed with the ability to sanction elected officials when WASH measures are not effectively implemented. Beyond the economic and political governance consideration related to WASH, institutional governance should also be improved at the local level, to the extent that ensuring the respect of interactions between the citizens and the State in the promotion of WASH is also enforced at the local level.

Suggested Citation

  • Elvis D. Achuo & Simplice A. Asongu, 2024. "The impact of public spending on water, sanitation and hygiene (WASH) adoption: Governance thresholds for complementary policies," Journal of Africa SEER Centre(ASC) 24/012, Africa SEER Centre(ASC).
    • Handle: RePEc:dbm:wpaper:24/012
    as

    Download full text from publisher

    File URL: https://africaseercentre.org/publications/RePEc/dbm/dbm-wpaper/The-Impact-of-Public-Spending-on-Water-Sanitation-and-Hygiene-WASH-Adoption-Governance-Thresholds-for-Complementary-Policies.pdf
    File Function: Revised version, 2024
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Marilys Victoire Razakamanana & Voahirana Tantely Andrianatoandro & Tiarinisaina Olivier Ramiandrisoa, 2023. "Do public health expenditures affect maternal and child health in Madagascar?," Health Economics Review, Springer, vol. 13(1), pages 1-10, December.
    2. Yselle F. Malah Kuete & Simplice A. Asongu, 2023. "Infrastructure Development as a Prerequisite for Structural Change in Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1386-1412, June.
    3. Achuo, Elvis D., 2023. "Resource wealth and the development dilemma in Africa: The role of policy syndromes," Resources Policy, Elsevier, vol. 83(C).
    4. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    5. Simplice Asongu & Jacinta Nwachukwu, 2016. "Welfare Spending and Quality of Growth in Developing Countries: A Note on Evidence from Hopefuls, Contenders and Best Performers," Working Papers of the African Governance and Development Institute. 16/028, African Governance and Development Institute..
    6. Pritam Ghosh & Moslem Hossain & Asraful Alam, 2022. "Water, Sanitation, and Hygiene (WASH) poverty in India: A district‐level geospatial assessment," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(2), pages 396-416, April.
    7. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    8. M. Hashem Pesaran, 2015. "Testing Weak Cross-Sectional Dependence in Large Panels," Econometric Reviews, Taylor & Francis Journals, vol. 34(6-10), pages 1089-1117, December.
    9. Pesaran, M. Hashem & Vanessa Smith, L. & Yamagata, Takashi, 2013. "Panel unit root tests in the presence of a multifactor error structure," Journal of Econometrics, Elsevier, vol. 175(2), pages 94-115.
    10. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    11. Tii N. Nchofoung & Elvis Dze Achuo & Linda Julie Tiague Zanfack, 2023. "Exchange rate misalignment and revenue mobilisation: a global comparative evidence of trade openness thresholds," Indian Economic Review, Springer, vol. 58(2), pages 281-310, December.
    12. Ariane Ephemia Ndzignat Mouteyica & Nicholas Ngepah, 2023. "Health outcome convergence in Africa: the roles of immunization and public health spending," Health Economics Review, Springer, vol. 13(1), pages 1-17, December.
    13. Elvis Dze Achuo & Nathanael Ojong, 2023. "Energy transition and pollution emissions in developing countries: are renewable energies guilty?," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 22(3), pages 361-382, July.
    14. Daniel, D. & Pande, Saket & Rietveld, Luuk, 2022. "Endogeneity in water use behaviour across case studies of household water treatment adoption in developing countries," World Development Perspectives, Elsevier, vol. 25(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Achuo, Elvis Dze & Njong, Aloysius Mom & Miamo, Clovis Wendji, 2025. "Born with a silver spoon but raised as a beggar: Fresh empirical investigations into the resource curse thesis in Africa," Resources Policy, Elsevier, vol. 102(C).
    2. Eibinger, Tobias & Deixelberger, Beate & Manner, Hans, 2024. "Panel data in environmental economics: Econometric issues and applications to IPAT models," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    3. Brantley Liddle & Fakhri Hasanov, 2022. "Industry electricity price and output elasticities for high-income and middle-income countries," Empirical Economics, Springer, vol. 62(3), pages 1293-1319, March.
    4. Bright Akwasi Gyamfi & Divine Q. Agozie & Festus Victor Bekun & Cihat Köksal, 2024. "Beyond the Environmental Kuznets Curve in South Asian economies: accounting for the combined effect of information and communication technology, human development and urbanization," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(5), pages 11263-11288, May.
    5. Hüseyin İçen, 2020. "Environmental Kuznets Curve in D8 Countries: Evidence from Panel Cointegration," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(32), pages 85-96, June.
    6. Huntington, Hillard & Liddle, Brantley, 2022. "How energy prices shape OECD economic growth: Panel evidence from multiple decades," Energy Economics, Elsevier, vol. 111(C).
    7. Anindya Banerjee & Josep Lluís Carrion-i-Silvestre, 2017. "Testing for Panel Cointegration Using Common Correlated Effects Estimators," Journal of Time Series Analysis, Wiley Blackwell, vol. 38(4), pages 610-636, July.
    8. Rizwana Yasmeen & Ihtsham Ul Haq Padda & Xing Yao & Wasi Ul Hassan Shah & Muhammad Hafeez, 2022. "Agriculture, forestry, and environmental sustainability: the role of institutions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 8722-8746, June.
    9. Kamalu, Kabiru & Wan Ibrahim, Wan Hakimah, 2022. "The Influence of Institutional Quality on Human Development: Evidence from Developing Countries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(1), pages 93-105.
    10. Omri, Anis, 2018. "Entrepreneurship, sectoral outputs and environmental improvement: International evidence," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 46-55.
    11. Tian Xiong & Kaan Celebi & Paul J. J. Welfens, 2022. "OECD countries’ twin long-run challenge: The impact of aging dynamics and increasing natural disasters on savings ratios," International Economics and Economic Policy, Springer, vol. 19(4), pages 741-759, October.
    12. José Fuinhas & António Marques & Alcino Couto, 2015. "Oil rents and economic growth in oil producing countries: evidence from a macro panel," Economic Change and Restructuring, Springer, vol. 48(3), pages 257-279, November.
    13. Škare, Marinko & Porada-Rochoń, Małgorzata, 2023. "Are we making progress on decarbonization? A panel heterogeneous study of the long-run relationship in selected economies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    14. Georgios Mavropoulos & Theodore Panagiotidis, 2023. "The role of relative income in the share of children born out-of-wedlock in the USA," Empirical Economics, Springer, vol. 64(3), pages 1105-1120, March.
    15. Zhang, Zhenhua & Zhang, Yunpeng & Zhao, Mingcheng & Muttarak, Raya & Feng, Yanchao, 2023. "What is the global causality among renewable energy consumption, financial development, and public health? New perspective of mineral energy substitution," Resources Policy, Elsevier, vol. 85(PA).
    16. Mariam Camarero & Sergi Moliner & Cecilio Tamarit, 2025. "Which are the long-run determinants of US outward FDI? Evidence using large long-memory panels," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 34(2), pages 259-290, February.
    17. Voumik, Liton Chandra & Ghosh, Smarnika & Rashid, Mamunur & Das, Mihir Kumar & Esquivias, Miguel Angel & Rojas, Omar, 2024. "The effect of geopolitical risk and green technology on load capacity factors in BRICS," Utilities Policy, Elsevier, vol. 88(C).
    18. António Afonso & José Alves & Tovar João Jalles & Sofia Monteiro & João Tovar Jalles, 2025. "Shaken Balances: Climate Risks and the Dynamics of Fiscal and External Sustainability," CESifo Working Paper Series 11818, CESifo.
    19. Vo, Duc, 2019. "The Impact of Foreign Direct Investment on Environment Degradation: Evidence from Emerging Markets in Asia," MPRA Paper 103292, University Library of Munich, Germany.
    20. Matthias Gubler & Christoph Sax, 2019. "The Balassa-Samuelson effect reversed: new evidence from OECD countries," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 155(1), pages 1-21, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:dbm:wpaper:24/012. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Bertrand Tchiemedjo Nankam (email available below). General contact details of provider: https://africaseercentre.org/ .

    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.