Effect of Various Categories of Government Expenditure on Economic Growth in Kenya

2021 ◽  
Vol 3 (1) ◽  
pp. 21-40
Author(s):  
Grace Wambui Kimani ◽  
James Maingi
Keyword(s):  
Economic Growth ◽  
Quantitative Data ◽  
Health Expenditure ◽  
Government Expenditure ◽  
Allocation Of Resources ◽  
Education Expenditure ◽  
Defense Expenditure ◽  
Dependent Variables ◽  
The Government ◽  
Positive Effect

In Kenya, government expenditure has been changing tremendously in its composition and size. Noticeably, since Kenya’s independence, government expenditure has witnessed great expansion. However, the country has not achieved consistent economic growth for a long duration of time. Despite the increase in allocation of resources through increasing public spending, economic growth has not grown at the same rate. As such, economic growth did not consummate with the increase in allocation of resources through government expenditure. The study sought to determine the effect of education expenditure, defense expenditure, health expenditure and infrastructure expenditure on economic growth. It used an explanatory research design and secondary time-series data for the period between 1985 and 2018. Data on education expenditure, defense expenditure, health expenditure as well as infrastructure expenditure and economic growth was acquired from Kenya National Bureau of Statistics. The quantitative data was collected, edited and coded into Statistical software known as STATA version 14. Analysis of the quantitative data was based on descriptive as well as inferential statistics. Correlation analysis was employed to assess the strength of correlation between independent and dependent variables whereas regression analysis determined the weight of association between independent and dependent variables. Diagnostic test was performed to test for the regression model assumptions before carrying out regression analysis. The research focused on autocorrelation test, stationarity test, autocorrelation test, normality as well as heteroscedasticity test. The study revealed that education expenditure had a positive effect on economic growth in Kenya. The study found that defense expenditure had a positive effect on economic growth in Kenya. The results revealed that health expenditure had a positive effect on economic growth in Kenya. In addition, the study found that infrastructure expenditure had a positive effect on economic growth. The study concludes that government expenditure has a significant effect on economic growth in Kenya. The study policy implication of the study is that Kenyan government as well as policy makers should formulate policies and guidelines geared towards increasing education expenditure. This will help in ensuring adequacy in a trained, qualified and productive labor that is important in ensuring an improvement in economic growth. In addition, the government of Kenya should allocate at least 15 percent of their total expenditure to the healthcare so as to ensure a productive and healthy workforce. The government also needs to increase infrastructure funding as recommended by the World Bank to between 7 and 9 percent.

scholarly journals THE FACTORS INFLUENCING ECONOMIC GROWTH IN INDONESIA

2020 ◽  
Vol 8 (1) ◽  
Author(s):  
Dian Citra Amelia
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
Government Expenditure ◽  
Negative Influence ◽  
Positive Effects ◽  
Negative Effect ◽  
The Government ◽  
Positive Effect

This research is based on the fact that the state of economic growth in Indonesia tends to fluctuate, even more often decrease. This is because the government policy is not appropriate to improve the economic growth of Indonesia. This study aims to determine and analyze the factors of foreign direct investment, inflation, international trade, and government expenditure that affect economic growth in Indonesia. The problem in this research is due to the limited fund in economic development both structure and infrastructure so that economic growth tends to decrease. Therefore, appropriate strategies must be taken to overcome the limitations in promoting economic growth. From this problem, this research aims to see how big influence of foreign direct investment (FDI), inflation (INF), international trade (NX) and government expenditure (GE) variable to economic growth. The data used in this study is secondary data (periodical data) in the period of observation 1996-2014 obtained from the World Bank and Statistics of Indonesia. To identify the influence of the variables used in this study used the VAR (Vector Autoregression) method. The results of this study show that equation regression shows that FDI (-1) has a negative influence on economic growth and FDI (-2) has a positive effect on economic growth, INF (-1) and INF (-2) have positive effects on economic growth , Variable NX (-1) has a positive effect on economic growth but NX (-2) has a negative effect on economic growth, and GE variable (-1) has a positive effect on economic growth while GE (-2) has a negative effect on growth Economy.

scholarly journals A quantitative analysis of sources of changes in government expenditures on health, 2000 to 2015: what can we learn from experience to date?

2019 ◽  
Vol 3 ◽  
pp. 5 ◽  
Author(s):  
Helen Saxenian ◽  
Ipchita Bharali ◽  
Osondu Ogbuoji ◽  
Gavin Yamey
Keyword(s):  
Economic Growth ◽  
Health Expenditure ◽  
Government Expenditure ◽  
Health Expenditures ◽  
Government Expenditures ◽  
Government Budget ◽  
Tax Base ◽  
Current Health ◽  
Domestic Sources ◽  
The Government

Background: Achieving universal health coverage (UHC) requires increased domestic financing of health by low-income countries (LICs) and middle-income countries (MICs). It is critical to understand how much governments have devoted to health from their own sources and how much growth might be realistic over time. Methods: Using data from WHO’s Global Health Expenditure Database, we examined how the composition of current health expenditure changed by financing source and the main sources of growth in health expenditures from 2000-2015. We also disaggregated how much growth in government expenditures on health from domestic sources was due to economic growth, growth in the tax base, reallocations in government expenditures towards health, and the interactions of these factors. Results: Lower MICs (LMICs) and upper MICs (UMICs), as a group, saw a significant reduction in out-of-pocket expenditures and a significant growth in government expenditures on health from domestic sources as a share of current health expenditures over the period. This trend indicates likely progress in the pathway to UHC. For LICs, these trends were much more muted. Growth in government expenditure on health from domestic sources was driven primarily by economic growth in LICs, LMICs, and UMICs. Growth in government expenditure on health due to a strengthened tax base was most important in UMICs. For high-income countries, where economic growth was relatively slower and tax bases were already strong, the largest driver of growth in government expenditure on health from domestic sources was reallocation of the government budget towards health. Conclusions: Given these findings from 2000-2015, discussions about a government’s ability to reallocate to health from its overall budget need to be evidence based and pragmatic.  Dialogue on domestic resource mobilization needs to emphasize overall economic growth and growth in the tax base as well as the share of health in the government budget.

scholarly journals Budget: A Retrograde for Agriculture

1997 ◽  
Vol 22 (2) ◽  
pp. 23-28
Author(s):  
Bhupat M Desai
Keyword(s):  
Economic Growth ◽  
Government Expenditure ◽  
Allocation Of Resources ◽  
Absolute Poverty ◽  
Poor Growth ◽  
Agricultural Growth ◽  
The Government

According to the author, though the budget has some positive initiatives for agriculture, they are unlikely to pull the sector out of its poor growth in postreform period. Moreover, the budget shows that the government expenditure for agriculture leaves much to be desired. Therefore, the author suggests that the budget could have had better inter-sectoral perspective for generation and allocation of resources to employment-led economic growth and alleviation of absolute poverty with which agricultural growth is complementary.

scholarly journals Public Expenditure and Economic Growth: A Test of Wagner’s and Keynes Hypotheses in Nigeria and Angola Economies

2021 ◽  
Vol 1 (3) ◽  
pp. 21-26
Author(s):  
Saliu Mojeed Olanrewaju ◽  
Akeju Kemi Funlayo
Keyword(s):  
Economic Growth ◽  
Health Expenditure ◽  
Capital Investment ◽  
Public Expenditure ◽  
Government Expenditure ◽  
Education Expenditure ◽  
Investment Expenditure ◽  
Long Run ◽  
Johansen Cointegration ◽  
Wagner’S Theory

This study verifies the validation of Wagner’s theory and Keynes's hypothesis between three main government expenditure components (Health expenditure, education expenditure, and capital investment expenditure) and economic growth in Nigeria and Angola. The study employs Johansen cointegration and pairwise granger causality as the estimation techniques. Findings revealed no evidence of long-run relationships with government expenditure components of health, education, and capital investment and economic growth. The study equally reveals the validation of Wagner’s theory between growth and expenditure on health in both Nigeria and Angola. Evidence that confirms both Wagner’s theory and Keynes's hypothesis between growth and expenditure on education in Angola and validation of only Keynes hypothesis in Nigeria was found. Also, the study confirms the validation of Keynes's hypothesis between government expenditure on capital investment in both Nigeria and Angola

scholarly journals THE FACTORS INFLUENCING ECONOMIC GROWTH IN INDONESIA

2019 ◽  
Vol 8 (1) ◽  
pp. 34
Author(s):  
Dian Citra Amelia ◽  
Sri Fajar Ayu
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
Government Expenditure ◽  
Negative Influence ◽  
Positive Effects ◽  
Negative Effect ◽  
The Government ◽  
Positive Effect

This research is based on the fact that the state of economic growth in Indonesia tends to fluctuate, even more often decrease. This is because the government policy is not appropriate to improve the economic growth of Indonesia. This study aims to determine and analyze the factors of foreign direct investment, inflation, international trade, and government expenditure that affect economic growth in Indonesia. The problem in this research is due to the limited fund in economic development both structure and infrastructure so that economic growth tends to decrease. Therefore, appropriate strategies must be taken to overcome the limitations in promoting economic growth. From this problem, this research aims to see how big influence of foreign direct investment (FDI), inflation (INF), international trade (NX) and government expenditure (GE) variable to economic growth. The data used in this study is secondary data (periodical data) in the period of observation 1996-2014 obtained from the World Bank and Statistics of Indonesia. To identify the influence of the variables used in this study used the VAR (Vector Autoregression) method. The results of this study show that equation regression shows that FDI (-1) has a negative influence on economic growth and FDI (-2) has a positive effect on economic growth, INF (-1) and INF (-2) have positive effects on economic growth , Variable NX (-1) has a positive effect on economic growth but NX (-2) has a negative effect on economic growth, and GE variable (-1) has a positive effect on economic growth while GE (-2) has a negative effect on growth Economy.

scholarly journals Government Expenditures and Economic Growth

2020 ◽  
Vol 17 (2) ◽  
pp. 241
Author(s):  
Rohaiza Kamis ◽  
Hairul Nizwan Abd Majid ◽  
Nuraida Idora M Ramlee
Keyword(s):  
Economic Growth ◽  
Social Services ◽  
Health Expenditure ◽  
Time Series Data ◽  
Government Expenditure ◽  
Policy Implications ◽  
Government Expenditures ◽  
Series Data ◽  
Education Expenditure ◽  
The Relationship

This paper aims to empirically analyze the relationship between government expenditures and economic growth in Malaysia from 1987 to 2016. This study uses the time series data in identifying the economic growth determinants in Malaysia. The Multiple Linear Regression (MLR) is used to establish the relationship between government expenditure which are education expenditure, health expenditure, defense and security expenditure, and social services expenditure towards the economic growth in Malaysia. The findings for this study indicate all the independent variables have a significant relationship towards economic growth in Malaysia where the health expenditure is the most influenced government expenditure component towards the economic growth in Malaysia. These findings may give some overview of policy implications to the policymakers on optimising the effects of government expenditure on economic development.

Reexamine the Impacts of Education Expenditure, Capital Formation, Human Capital and Expert Labor on Malaysian Economic Growth

2021 ◽  
Vol 12 (3) ◽  
pp. 761-767
Author(s):  
Emilda Hashim Et.al
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Time Series Data ◽  
Government Expenditure ◽  
Capital Formation ◽  
Observation Time ◽  
Least Square ◽  
Series Data ◽  
Education Expenditure ◽  
The Government

This study aims to reexamine the relationships between selected macroeconomic variables, especially the expenditure on education, on growth of Malaysian economy. Specifically, the exogenous variables in this study comprise of government education expenditure, investment, human capital and expert labor. For analysis purpose, this study adopts the time series data from 1988 until 2018. The estimated model is developed by employing ordinary least square technique (OLS). Outcome of this study discloses that human capital is the most crucial variable in elucidating Malaysian economic growth in the long term. Additionally, the study findings affirm that the government expenditure on education and capital formation are second and third outstanding variables in clarifying the economic growth in the observation time frame, respectively. Surprisingly, this particular study discovers that labor force expertise is irrelevant in influencing economic growth for Malaysia case. Consequently, the results of this study are parallel with other previous studies, especially on the roles that have been played by all variables aforementioned above. Albeit insignificant, expert labor still gives little impact to Malaysia’s economic growth at 10% confidence level. The reason being, as a high middle income country, human capital has more profound effect in promoting economic growth in Malaysia due to its ability to generate remarkably higher productivity for the nation compares to expert labor factor. For future study, further dynamic analysis is needed to prove the variables’ relationships in the short and long terms.

scholarly journals DETERMINAN ISLAMIC HUMAN DEVELOPMENT INDEX (IHDI) PROVINSI JAWA TIMUR TAHUN 2001-2016

2020 ◽  
Vol 6 (7) ◽  
pp. 1410
Author(s):  
Reni Mustika Putri ◽  
Karjadi Mintaroem
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Human Development Index ◽  
Government Expenditure ◽  
Least Square ◽  
Education Expenditure ◽  
Test Analysis ◽  
Development Index ◽  
Independent Variables ◽  
Dependent Variables

This study aimed to determine the effect of economic growth, government expenditure, and ZIS distribution on IHDI in East Java in 2001-2016. The research method using quantitative approach by usingOrdinary Least Square (OLS) to see the elasticity of independent variables to dependent variables. The result of statistical test analysis showed that three of four independent variables had a positive and significant value on IHDI, which were: economic growth, goverment expenditure on education, and government expenditure on health. Zakat, infaq, sadaqah variables have nosignificant effect on IHDI.Keywords: Economic Growth, Education Expenditure, Health Expenditure, ZIS Distribution, Islamic Human Development Index

scholarly journals Educational Level and Tax Compliance: Empirical Evidence From Nigeria

2020 ◽  
Vol 10 (1) ◽  
pp. 160
Author(s):  
Stanley Ogoun ◽  
Godspower Anthony Ekpulu
Keyword(s):  
Educational Level ◽  
Government Expenditure ◽  
Tax Compliance ◽  
Tax Revenue ◽  
Education Expenditure ◽  
Government Investment ◽  
Ex Post ◽  
National Priority ◽  
Ex Post Facto ◽  
The Government

The study interrogates the relationship between educational level and tax compliance in Nigeria. The study employs the ex post facto research design to ascertain how government investment in education enhances tax compliance. The study covers 17 years (2002-2018) for both tax revenue (a surrogate for tax compliance) and education expenditure (a surrogate for educational level). From the empirical results, the study concludes that there is a positive nexus between government expenditure on education and tax revenue. The study, therefore, recommends that as a matter of necessity, the government should invest more in the overall educational demand of her citizens not only from tax revenues but from other oil and non-oil sources. The governments, from the federal and state levels, should act as a matter national priority endeavour to meet up with the international budgetary benchmark allocation for education, as recommended by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in its Education for All (EFA) document 2000-2015. This will give Nigerians more access to quality education that would result in moving up the global ranking in HDI with its resultant benefits.

scholarly journals Government Expenditure and Economic Growth Nexus: Evidence from Nigeria

2016 ◽  
Vol 5 (4) ◽  
pp. 56
Author(s):  
Oyediran, Leye Sherifdeen ◽  
Sanni, Ibrahim ◽  
Adedoyin, Lukman ◽  
Oyewole Olabode Michael
Keyword(s):  
Economic Growth ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Least Square ◽  
National Bureau ◽  
Fiscal Discipline ◽  
Secondary Sources ◽  
Economic Development And Growth ◽  
The Government ◽  
The Impact

The need to better the lots of citizens through government expenditure has raised questions on the impact of government expenditure on the economic development and growth of nations. It is against this background that this paper examined the antecedent effect of government spending on the Nigerian economic growth. The general objective of the study is to ascertain the relationship between government expenditure and economic growth in Nigeria; specifically, the study examined: (i) the significance influence of government capital expenditure on economic growth in Nigeria and (ii) the significance influence of government recurrent expenditure on economic growth in Nigeria. The study employed ordinary least square (OLS) multiple regression analysis in estimating the specified model, with the Gross Domestic Product (GDP) as the dependent variable, while Capital Expenditure (CAPEXP) and Recurrent Expenditure (REXP) are the independent variables. Data between 1980 – 2013 were collected from secondary sources through the National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN). Results showed that in Nigeria, there exist a significant relationship between the government expenditure and economic growth. The study therefore recommends instilling fiscal discipline in government expenditures, and putting in place structural mechanisms to act as surveillance on capital spending so as to boost the nation’s human and social capital.

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