Relationship Between Public Expenditure, Economic Growth and Poverty

Abstract

The objective of this paper is to examine the relationship between public expenditure, economic growth and poverty. The data are taken from the Word Development Indicator (WDI).We conduct an empirical study for a set of African countries to investigate the impact of public expenditure and economic growth on poverty reduction during the study period 1990-2020 and the impact of public expenditure and poverty on economic growth for a period from 1996 to 2020. We use Generalized least squares (GLS). The econometric results show that economic growth and public spending have a positive effect on poverty reduction. This manchette are necessary for poverty reduction. This study, therefore, recommends that the government should promote pro-poor growth that can have a significant impact on poverty reduction through increased incomes and job creation. It should also increase public funding for education and health.