Exploring co-integration and causality relationships between government expenditure and economic performance in Namibia.

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dc.contributor.authorOgbokor, Cyril A.
dc.date.accessioned2015-06-16T08:08:01Z
dc.date.available2015-06-16T08:08:01Z
dc.date.issued2015
dc.description.abstractOne of the heated discussions among economists nowadays relates to the efficacy of government expenditure as a tool for stimulating growth in the national economy. This research paper contributes to the existing literature by investigating the possibility of a dynamic relationship between government expenditure and economic growth in Namibia through the use of the two-step Engle-Granger approach. Accordingly, the study examines interactions between total government expenditure and economic growth by also including health and education as potential predictors of economic growth. The annual time-series macroeconomic secondary data-set relied upon runs from the period 1990 to 2013. The dependent variable, that is, real gross domestic product serves as a proxy to economic growth; while total public expenditure, as well as, expenditures on education and health operated in the model as predictors of economic growth. First, the study found co-integration relationships among the variables used in the study. Second, a unidirectional causality relationship running from economic growth to the health sector was observed. Further, the study found that government spending and expenditures on education and health are all weak predictors of economic growth. The lesson arising from this study would be that simply pumping a lot of financial resources into particular sectors of the economy is not a guarantee for growth. Forthcoming studies should amongst others direct attention to the type of activities that public finance is mainly used for in the health and education sectors in respect of Namibia.en_US
dc.identifier.citationOgbokor, C. A. (2015). Exploring co-integration and causality relationships between government expenditure and economic performance in Namibia. Developing Country Studies, 5(9), 83-90.en_US
dc.identifier.issn2224-607X
dc.identifier.urihttp://hdl.handle.net/10628/523
dc.language.isoenen_US
dc.publisherIISTEen_US
dc.subjectGovernment expenditure vs Economic performance - Namibiaen_US
dc.subjectEconomic performance - Namibiaen_US
dc.subjectEconomic growth - Namibiaen_US
dc.subjectGranger-causalityen_US
dc.subjectEngle-Granger techniqueen_US
dc.subjectCo-integration and causality relationshipsen_US
dc.titleExploring co-integration and causality relationships between government expenditure and economic performance in Namibia.en_US
dc.typeArticleen_US

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