The Effect of Increasing Government Employment on Growth: Some Evidence from Africa

James Gordon

No 1997/033, IMF Working Papers from International Monetary Fund

Abstract: In contrast to the experience in industrial countries, government sectors in a number of African countries grew rapidly in relative size through the 1980s and early 1990s, implying a differential between measured GDP growth and growth of private sector activity. In these countries, the government sector was also an important source of employment growth. Leaving aside issues of crowding out, boosting growth in this way raises questions of fiscal sustainability. It also urges caution in interpreting growth performance.

Keywords: WP; government; government activity; GDP; government sector; growth; government employment; Africa; Wagner’s Law; government growth boost; GDP ratio; Public employment; Employment; Public sector; Government debt management; Production growth (search for similar items in EconPapers)
Pages: 15
Date: 1997-03-01
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