Government Spending for Economic Growth in Ethiopia
| Title | Government Spending for Economic Growth in Ethiopia |
| Publication Type | Journal Article |
| Year of Publication | 2014 |
| Authors | Muhammed, A, Asfaw, PMelesse |
| Journal | Journal of Economics and Sustainable Development |
| Volume | 5 |
| ISSN | 2222-1700 |
| Keywords | co-integration, Economic Growth, public expenditure, unit root test. |
| Abstract | This study is designed to address the relationship that can be revealed between real gross domestic product and
various composition of government expenditure like: agriculture, education, health, transport and
communication, urban development and housing, total capital expenditure and total recurrent expenditure in
Ethiopia. In doing so, it answers the research question: which composition of government expenditure promotes
economic growth in Ethiopia? The sources of data being used in this study are purely of secondary data for the
period between 1975-2011G. C as obtained from Ministry of Finance and Economic Development (MOFED)
and various Federal and Regional Bureaus. The methodology used in this research is a Co-integration error
correction model. The output of this research showed that expenditure on health and total capital expenditure are
both positive and statistically significant in explain the growth of Ethiopian economy. However, Expenditure on
agriculture, education, health, transport
|