The STUDIA UNIVERSITATIS BABE┼×-BOLYAI issue article summary

The summary of the selected article appears at the bottom of the page. In order to get back to the contents of the issue this article belongs to you have to access the link from the title. In order to see all the articles of the archive which have as author/co-author one of the authors mentioned below, you have to access the link from the author's name.

 
       
         
    STUDIA OECONOMICA - Issue no. 2 / 2022  
         
  Article:   EFFECT OF GOVERNMENT AGRICULTURAL EXPENDITURE ON ECONOMIC GROWTH: EVIDENCE FROM A DEVELOPING COUNTRY.

Authors:  EBENEZER TOYIN MEGBOWON, LERATO MOTHAE, JOSEPH RAPHOLO RELEBOHILE.
 
       
         
  Abstract:  DOI: 10.2478/subboec-2022-0006

Published Online: 2022-08-30
Published Print: 2022-08-30
pp. 1-20

VIEW PDF

FULL PDF

Abstract: Fiscal policy has been used by various governments to promote economic growth. The effectiveness of government expenditure on economic growth depends on recipient sector of government expenditure. This study contributes to this research area by investigating the effect of government agricultural expenditure on economic growth in the Kingdom of Lesotho. The government of Lesotho identified the agricultural sector as a productive sector that is central to the achievement the economic growth goal and development plan. Descriptive statistics and inferential econometric techniques (ARDL, DOLS and VEC Granger causality) over time-series data for the period 1982-2019 were utilized in this study. The results suggest that while current level and pattern of government agriculture expenditure cannot stimulate the desired economic growth and prosperity in the country, domestic investment appear to be a stimulant of the desired economic prosperity. Consequently, any economic growth policy or strategy that is premised on government agricultural sector expenditure would fail. Thus study recommends that countries including Lesotho should prioritize sustained increase in domestic investment.

JEL Classification: H50, Q14, O10
Keywords: Government Expenditure, Agriculture Sector, Economic Growth, Keynesian Hypothesis
 
         
     
         
         
      Back to previous page