TAILLE OPTIMALE DE L’ETAT EN RD CONGO

OPTIMAL SIZE OF GOVERNMENT IN THE DEMOCRATIC REPUBLIC OF CONGO

Gastonfils Lonzo Lubu

MPRA Paper from University Library of Munich, Germany

Abstract: This study assesses the optimal size of government in the Democratic Republic of Congo. It uses the time series data over the period 1961-2013 and is based on a model using the Armey curve. It takes into account the possible effects of composition of public expenditure (wages and salaries, subsidies and transfers, education, health, infrastructure and public works, defense institutions, internal and external debt, public investment ...).The empirical results point out that the optimal size of government in the DRC is estimated at 25% between 1961 and 2013 against a staff level of 21%. It is 22% between 2001 and 2013. They show that the state spends well below its potential growth. The study also shows the weakness in spending on human capital including education, health and economic infrastructure, while the state continues to increase its expenditure composition of political institutions and defense spending significantly to beyond its potential.

Keywords: Public expenditure; economic growth; optimal size of the state; curve Armey (search for similar items in EconPapers)
JEL-codes: C10 C52 E62 H1 (search for similar items in EconPapers)
Date: 2014-12-17
New Economics Papers: this item is included in nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:60715

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