Economics at your fingertips  

Government Expenditure and Economic Growth in South Africa: an Empirical Investigation

Nicholas Odhiambo ()

Atlantic Economic Journal, 2015, vol. 43, issue 3, 393-406

Abstract: In this study, the dynamic causal relationship between government expenditure and economic growth is examined using data from South Africa, the most advanced economy in Africa. The study uses the recently developed auto-regressive distributed lag model (ARDL)-bounds testing approach to examine this linkage. In order to address the omission of variable bias, the study incorporates unemployment as an intermittent variable between economic growth and government spending, thereby creating a simple multivariate model. The empirical findings of this study show that, although both government expenditure and economic growth Granger-cause each other in the short run, in the long run, it is economic growth that Granger-causes government expenditure. Copyright International Atlantic Economic Society 2015

Keywords: South Africa; Government expenditure; Economic growth; ARDL-bounds testing approach; C10; H50; O10 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

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:

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11293/PS2

Access Statistics for this article

Atlantic Economic Journal is currently edited by Kathleen S. Virgo

More articles in Atlantic Economic Journal from Springer, International Atlantic Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-05-16
Handle: RePEc:kap:atlecj:v:43:y:2015:i:3:p:393-406