LES EFFETS NON LINEAIRES DES DÉPENSES PUBLIQUES SUR LA CROISSANCE ÉCONOMIQUE EN RD CONGO

NONLINEAR EFFECTS OF SPENDING ON ECONOMIC GROWTH IN DR CONGO

Gastonfils Lonzo Lubu and Desiré Avom

MPRA Paper from University Library of Munich, Germany

Abstract: The objective of this study is to evaluate the effect of public spending on economic growth in DR Congo. This is to highlight the non-linear effects of public expenditure on economic growth in the DRC. In view of the results of the econometric regression, there are non-linearities in the relationship between public spending and economic activity in the DRC. It was observed an optimal threshold of public expenditure in the DRC is 24% between 1961 and 2013 through the logic modeling endogenous thresholds, originally developed by Hansen (2000), it also appears to an external debt ratio 112% with a lower or equal to 2.3% budget balance, the state influences Keynesian economic activity in the DRC beyond these thresholds, the effect of public expenditure is not Keynesian or anti Keynesian.

Keywords: government spending; economic growth; governance; Threshold Regression Models (search for similar items in EconPapers)
JEL-codes: C22 D73 E12 F4 F43 H11 H50 (search for similar items in EconPapers)
Date: 2014-12-17
New Economics Papers: this item is included in nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:60716

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