Public Expenditure, Economic Growth and Development in Some Selected African Countries an Impact Assessment Evaluation
This work examines public expenditure and economic growth and development in sub Saharan Africa over the period of 1990 to 2010, with emphasis on expenditure components. The lack of meaningful development and prevalence of extreme poverty in the region is a source of concern to researchers. The burning issue is how government could use its spending to improve infrastructure, reduce poverty so as to improve the general well being of its citizens. This is because public expenditure is seen as critical in the attainment of the Millennium Development Goals MDGs. Based on this crucial role; the researcher examined public expenditure and economic growth and development in sub Saharan Africa. Secondary data obtained from various sources were analysed using Unit root test and cointegration, Vector error correction model was respecified and tested. The result revealed that, public expenditure has positive and significant impact on economic growth. While the components of public expenditure exerted insignificant impact on GDP. Further analysis revealed that per capita income and poverty were not affected by public expenditure. It was equally noted that capital expenditure did not have influence on GDP and other dependent variables. The study also revealed that public expenditure Granger caused GDP. Thus the study, apart from contributing to existing literature, explained the prevalence of poverty in sub Saharan Africa. Therefore the researcher recommended that the countries should review their expenditure profile in order to achieve optimal result. Besides, their governments‟ spending should be prioritized in favour of the critical components of public expenditure (education, health transport, communication) in order to improve the well being of the citizens. Government should increase its funding on capital expenditure, especially the provision of merit goods which will enhance social capital critical in the process of addressing the problem of mass poverty. Government should monitor projects to ensure that funds meant for these sectors are optimally utilized. This will assist the countries reduce poverty and improve the standard of living of their citizens.