Public spending and economic growth in Zambia - an econometric analysis

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dc.contributor.advisorMukuddem-Petersen, Janineen_ZA
dc.contributor.authorMuyaba, Andrew Munsakaen_ZA
dc.date.accessioned2018-02-09T12:49:38Z
dc.date.available2018-02-09T12:49:38Z
dc.date.issued2017en_ZA
dc.description.abstractThe 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.en_ZA
dc.identifier.apacitationMuyaba, A. M. (2017). <i>Public spending and economic growth in Zambia - an econometric analysis</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,Research of GSB. Retrieved from http://hdl.handle.net/11427/27477en_ZA
dc.identifier.chicagocitationMuyaba, Andrew Munsaka. <i>"Public spending and economic growth in Zambia - an econometric analysis."</i> Thesis., University of Cape Town ,Faculty of Commerce ,Research of GSB, 2017. http://hdl.handle.net/11427/27477en_ZA
dc.identifier.citationMuyaba, A. 2017. Public spending and economic growth in Zambia - an econometric analysis. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Muyaba, Andrew Munsaka AB - 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. DA - 2017 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2017 T1 - Public spending and economic growth in Zambia - an econometric analysis TI - Public spending and economic growth in Zambia - an econometric analysis UR - http://hdl.handle.net/11427/27477 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/27477
dc.identifier.vancouvercitationMuyaba AM. Public spending and economic growth in Zambia - an econometric analysis. [Thesis]. University of Cape Town ,Faculty of Commerce ,Research of GSB, 2017 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/27477en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentResearch of GSBen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherDevelopment Financeen_ZA
dc.titlePublic spending and economic growth in Zambia - an econometric analysisen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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