Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
Public spending and economic growth in Zambia - an econometric analysis
The importance of understanding the relationship between fiscal policies and economic growth has inspired many scholars to investigate the underlying relationship between these variables. In Zambia the growth in public expenditure has become a topical issue in the light of escalating debt levels and...
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis |
| Language: | English |
| Published: |
Research of GSB
2018
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867614395600732160 |
|---|---|
| access_status_str | Open Access |
| author | Muyaba, Andrew Munsaka |
| author2 | Mukuddem-Petersen, Janine |
| author_browse | Mukuddem-Petersen, Janine Muyaba, Andrew Munsaka |
| author_facet | Mukuddem-Petersen, Janine Muyaba, Andrew Munsaka |
| author_sort | Muyaba, Andrew Munsaka |
| collection | Thesis |
| description | The importance of understanding the relationship between fiscal policies and economic growth has inspired many scholars to investigate the underlying relationship between these variables. In Zambia the growth in public expenditure has become a topical issue in the light of escalating debt levels and widening budget deficit; as a result, the government is constantly under pressure to borrow to cover the deficit. The aim of this study was to analyze the effect of government expenditure on economic growth in Zambia. The study used secondary data which was sourced from the Zambian Ministry of Finance and World Bank websites for the period from 1991 to 2015. The data was analyzed using E-Views 9.5 student version. The econometric tools used to analyze the data are the Autoregressive Distribution Lag (ARDL) and the Pairwise Granger Causality Test. The variables included in the research are public expenditure and economic growth. Both variables were stationary at first difference. Empirical finding from the study indicates that there is a positive and significant relationship between public expenditure and economic growth in Zambia both in the short-run and the long-run. Further, Granger causality test demonstrated a unidirectional causality from public expenditure to economic growth. This finding validated the fact that the Zambian fiscal environment is aligned to the Keynesian theory as opposed to Wagner's Law. In essence, the study recommended more allocation of resources towards public expenditure, including exploiting public-private partnerships as a way of increasing expenditure towards social sectors and infrastructure without necessarily increasing the strain on government resources. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/27477 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:51:22.035Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2018 |
| publishDateRange | 2018 |
| publishDateSort | 2018 |
| publisher | Research of GSB |
| publisherStr | Research of GSB |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/27477 Public spending and economic growth in Zambia - an econometric analysis Muyaba, Andrew Munsaka Mukuddem-Petersen, Janine Development Finance The importance of understanding the relationship between fiscal policies and economic growth has inspired many scholars to investigate the underlying relationship between these variables. In Zambia the growth in public expenditure has become a topical issue in the light of escalating debt levels and widening budget deficit; as a result, the government is constantly under pressure to borrow to cover the deficit. The aim of this study was to analyze the effect of government expenditure on economic growth in Zambia. The study used secondary data which was sourced from the Zambian Ministry of Finance and World Bank websites for the period from 1991 to 2015. The data was analyzed using E-Views 9.5 student version. The econometric tools used to analyze the data are the Autoregressive Distribution Lag (ARDL) and the Pairwise Granger Causality Test. The variables included in the research are public expenditure and economic growth. Both variables were stationary at first difference. Empirical finding from the study indicates that there is a positive and significant relationship between public expenditure and economic growth in Zambia both in the short-run and the long-run. Further, Granger causality test demonstrated a unidirectional causality from public expenditure to economic growth. This finding validated the fact that the Zambian fiscal environment is aligned to the Keynesian theory as opposed to Wagner's Law. In essence, the study recommended more allocation of resources towards public expenditure, including exploiting public-private partnerships as a way of increasing expenditure towards social sectors and infrastructure without necessarily increasing the strain on government resources. 2018-02-09T12:49:38Z 2018-02-09T12:49:38Z 2017 Master Thesis Masters MCom http://hdl.handle.net/11427/27477 eng application/pdf Research of GSB Faculty of Commerce University of Cape Town |
| spellingShingle | Development Finance Muyaba, Andrew Munsaka Public spending and economic growth in Zambia - an econometric analysis |
| thesis_degree_str | Master's |
| title | Public spending and economic growth in Zambia - an econometric analysis |
| title_full | Public spending and economic growth in Zambia - an econometric analysis |
| title_fullStr | Public spending and economic growth in Zambia - an econometric analysis |
| title_full_unstemmed | Public spending and economic growth in Zambia - an econometric analysis |
| title_short | Public spending and economic growth in Zambia - an econometric analysis |
| title_sort | public spending and economic growth in zambia an econometric analysis |
| topic | Development Finance |
| url | http://hdl.handle.net/11427/27477 |
| work_keys_str_mv | AT muyabaandrewmunsaka publicspendingandeconomicgrowthinzambiaaneconometricanalysis |