Impact of Public Expenditure on the Growth in Morocco: Role of Governance

Tlaytmaste Bahaddi and Mohamed Karim ()

International Journal of Economics and Finance, 2017, vol. 9, issue 4, 12-19

Abstract: The objective of this study is to evaluate the effect of the public expenditure on economic growth in Morocco and to assess the quality of governance impact on public spending by using the Error Correction Model following the approach of Johansen. In the light of the results of the econometric regression, good governance remains the best option that allows the Moroccan government to achieve considerable macroeconomic performance. In fact, the budgetary component of total public expenditure has a long-term positive impact on the economic activity. It can be a good strategy for Morocco to invest in governance, which proves to provide low-cost long-term benefits. Overall, good governance improves the effectiveness of the budgetary policy and exerts a positive and significant effect on economic activity in Morocco.

Keywords: fiscal policy; governance; growth (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://ccsenet.org/journal/index.php/ijef/article/view/66896/36295 (application/pdf)
http://ccsenet.org/journal/index.php/ijef/article/view/66896 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:9:y:2017:i:4:p:12-19

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().