 The Impact of Government Expenditure Budget on Economic Growth In The Case Of EthiopiaSamuel Atsibha Gebreyesus ()
Journal of Economic and Social Development, 2022, vol. 09, issue 01, 01-07 Abstract: The paper examines the impact of government expenditures on economic growth in Ethiopia based on annual time series data from 1991 to 2016, gathered from the Ethiopian Ministry of Finance and World Bank databases. Economic growth depends on capital and recurrent expenditure, agriculture, industry, trade, foreign direct investment, services, and inflation. The regression model between the variables Durbin-Watson and VIF Test for autocorrelation and multicollinearity was the instrument of analysis. The findings show that the dependent variable of economic growth has a positive and significant relationship with the predictors of trade, capital expenditure, and services. The beta coefficient is highly positive for capital expenditure, trade, and the service sector, implying that the higher the investment in services and trade, as well as an increase in capital expenditure, the greater the economic growth. The government should increase its efforts to guarantee that resources are appropriately managed and invested in producing areas to support economic growth. Keywords: Autocorrelation; economic expenditure; economic growth; multicollinearity; regression (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ris:joeasd:0053 Access Statistics for this article More articles in Journal of Economic and Social Development from Clinical Journals Press |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.