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Public Expenditure, Governance And Economic Growth: An Empirical Analysis Applied To The Case Of The Democratic Republic Of Congo
[Depenses Publiques, Gouvernance Et Croissance Economique : Une Analyse Empirique Appliquee Au Cas De La Republique Democratique Du Congo]

Author

Listed:
  • Ally Manengu

    (UNIKIN - Département des Sciences économiques, Université de Kinshasa)

Abstract

This study contributes to the debate on the influence of institutional variables on macroeconomic variables. Theoretical and empirical studies show that the relationship between these variables is still controversial. The aim of this work is to empirically verify the direct and interactive effects of public spending and governance on economic growth in the DRC over a period from 1980 to 2023. To do this, we used the Autoregressive Distributed Lag (ARDL) model. The main findings are as follows: i) public spending negatively affects economic growth in the short term; a 1% increase in public spending reduces economic growth by 0. 0005%, and in the long term, their effect is positive and statistically significant; ii) in the short term, governance has a positive and statistically significant effect on growth, but in the long term this effect is negative and insignificant; iii) the interaction effect between public spending and poor governance is negative and statistically significant, both in the short term and in the long term, resulting in a contraction of economic activity. Hence the need to maintain good governance.

Suggested Citation

  • Ally Manengu, 2025. "Public Expenditure, Governance And Economic Growth: An Empirical Analysis Applied To The Case Of The Democratic Republic Of Congo [Depenses Publiques, Gouvernance Et Croissance Economique : Une Ana," Post-Print hal-05058391, HAL.
  • Handle: RePEc:hal:journl:hal-05058391
    Note: View the original document on HAL open archive server: https://hal.science/hal-05058391v1
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    References listed on IDEAS

    as
    1. LONZO LUBU, Gastonfils & AVOM, Desiré, 2014. "Les Effets Non Lineaires Des Dépenses Publiques Sur La Croissance Économique En Rd Congo [Nonlinear Effects Of Spending On Economic Growth In Dr Congo]," MPRA Paper 60716, University Library of Munich, Germany.
    2. Ejaz Ghani & Musleh-Ud Din, 2006. "The Impact of Public Investment on Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(1), pages 87-98.
    3. Alesina, Alberto & Özler, Sule & Roubini, Nouriel & Swagel, Phillip, 1996. "Political Instability and Economic Growth," Journal of Economic Growth, Springer, vol. 1(2), pages 189-211, June.
    4. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    O47; O49 Public expenditure; governance; economic growth; Autoregressive Distributed Lag Model (ARDL); Dépenses publiques gouvernance Croissance économique Modèle Autorégressif à retard échelonné (ARDL) RDC C32 K0 E12 O47 O49 Public expenditure governance economic growth Autoregressive Staggered Delay Model (ARDL) DRC Code-JEL : C32 K0 E12 O47 O49; Dépenses publiques; gouvernance; Croissance économique; Modèle Autorégressif à retard échelonné (ARDL); RDC C32; K0; E12; DRC Code-JEL : C32;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • K0 - Law and Economics - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • K0 - Law and Economics - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • K0 - Law and Economics - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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