The effect of government expenditure on economic growth in Tanzania

No Thumbnail Available
Journal Title
Journal ISSN
Volume Title
University of Dar es Salaam
This study indicates that there is a vast relationship between economic growth and the public sector growth, which is a paramount area of analysis. The general overview is that public expenditure can be growth-enhancing although the funding of such projects can be decreasing over time. Public funding may either directly or indirectly increase growth in total output through its interaction with the private sector. The Broad objective of this study is to examine the effect of government expenditure on the economic growth of Tanzania for the period 1965-2015. The validity of data started by testing unit root whereby with an exception of economic growth which is stationary at level, all variables are stationary at first difference. This study performed the cointegration test and find the existence of long-run relationship. Using the Autoregressive Distributed Lag estimation method, the study find that there is a positive relationship between public investment and economic growth in the short-run but in the long-run the positive relationship between public expenditure and economic growth. Also in this study indicate that there is a negative relationship between economic growth and human capital which education and health. Moreover, the finding indicate that in the long-run public expenditure on consumption effects negatively on economic growth again it show that private investment and economic growth are strongly positive related for both short-run and long-run.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HJ7461.T34M873)
Government expenditure, Economic growth, Tanzania
Mushi, J (2018) The effect of government expenditure on economic growth in Tanzania.Master dissertation, University of Dar es Salaam, Dar es Salaam.