<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This study examined the effect of government expenditure on its disaggregated level on economic growth in a sample of 20 sub-Saharan African Countries over the period of 1980-2010 in a dynamic panel data model. The result from Generalised Method of Moments (GMM) revealed an inverse relationship between productive government expenditure and economic growth in sub-Sahara Africa. Also, productive government expenditures were not actually productive most especially when financed by non-distortonary government tax revenue in sub-Saharan African countries. The study concluded that the productive government expenditure and its corresponding source of the mode of financing were counterproductive for economic performance in the African countries.</p></abstract>

This study examined the effect of government expenditure on its disaggregated level on economic growth in a sample of 20 sub-Saharan African Countries over the period of 1980-2010 in a dynamic panel data model. The result from Generalised Method of Moments (GMM) revealed an inverse relationship between productive government expenditure and economic growth in sub-Sahara Africa. Also, productive government expenditures were not actually productive most especially when financed by non-distortonary government tax revenue in sub-Saharan African countries. The study concluded that the productive government expenditure and its corresponding source of the mode of financing were counterproductive for economic performance in the African countries.

Productive Government Expenditure and Economic Performance in sub-Saharan Africa: An Empirical Investigation

Hammed Adetola Adefeso is at Department of Local Government Studies, Faculty of Administration, Obafemi Awolowo University, Ile-Ife,

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This study examined the effect of government expenditure on its disaggregated level on economic growth in a sample of 20 sub-Saharan African Countries over the...

Productive Government Expenditure and Economic Performance in sub-Saharan Africa: An Empirical Investigation

Published Online: Nov 19, 2016

Page range: 1 - 18

DOI: https://doi.org/10.1515/zireb-2016-0005

Keywords
Productive government expenditure, economic performance, GMM, non-distortionary taxation

© 2016 Hammed Adetola Adefeso, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Productive Government Expenditure and Economic Performance in sub-Saharan Africa: An Empirical Investigation

Published Online: Nov 19, 2016

Page range: 1 - 18

DOI: https://doi.org/10.1515/zireb-2016-0005

KeywordsProductive government expenditure, economic performance, GMM, non-distortionary taxation

© 2016 Hammed Adetola Adefeso, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Productive government expenditure, economic performance, GMM, non-distortionary taxation