GROWTH OF PUBLIC EXPENDITURE AND BUREAUCRACY IN KUWAIT

Fuad Abdullah Al-Omar
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Fuad Abdullah Al-Omar: Vice President (Finance), Islamic Development Bank, Postal: Islamic Development Bank, Jeddah, Saudi Arabia.

Islamic Economic Studies, 1995, vol. 02-2, 1-14

Abstract: This paper aims at studying the phenomenon of increasing public expenditure and growth of bureaucracy in Kuwait. The study attempts to assess the impact of certain macro and micro factors on public expenditure through statistical analysis. The findings show a very strong positive correlation between public expenditure and certain micro factors such as expansion of education and health services. There is also a positive relation between public expenditure and such macro factors as per capita income and population. However, this correlation is not as strong as with the micro factors. The study suggests six groups of factors that may have been responsible for the growth in public expenditure which is not explained by the micro factors specified above. In the light of this evidence, the paper puts forward some recommendations and points out certain areas for future study.

Date: 1995
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