An empirical analysis of disaggregated government expenditure and economic growth in South Africa

Temitope Leshoro ()

No 22644, Working Papers from University of South Africa, Department of Economics

Abstract: The motivation for this study stems from the weak economic growth that the country has beenexperiencing lately, coupled with the concern over government spending in South Africa. Estimatingonly the effect of government spending on economic growth is not enough; the different componentsof government spending should also be investigated in order to observe their relationships witheconomic growth. Earlier studies in South Africa considered the effects of total government spendingon economic growth. This is the first study to our knowledge that disaggregated government spendinginto government investment spending and government consumption spending. This study, therefore,examines the effects of government investment expenditure and government consumption expenditurealong with groups of control variables on economic growth in South Africa, using the autoregressivedistributed lag (ARDL) technique. Annual data spanning the period 1976 to 2015 was employed. Theresults show that the disaggregated government spending is positively related to economic growthboth in the long run and the short run, during the period considered

Keywords: ARDL; consumption; economic growth; government spending; investment. (search for similar items in EconPapers)
Date: 2017-05
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Citations: View citations in EconPapers (4)

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