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Jurnal Ekonomi Malaysia

57 (1) 2023 113 – 126

Impact of Public Expenditure on Poverty: Role of Governance

Department of Economics and Development Studies
Federal University of Kashere
PMB 0182, Gombe, NIGERIA.

kumotito@yahoo.co.nz

School of Business and Economics
Universiti Putra Malaysia
43400 UPM Serdang, Selangor, MALAYSIA.

suryatiis@upm.edu.my

Department of Local Government and Development
Ahmadu Bello University, Zaria, NIGERIA.


School of General Studies
Federal Polytechnic Kaltungo
Gombe State, NIGERIA.


Abstract

The paper investigated the role of governance in the impacts of government expenditure on poverty. We used a system-Generalised Methods Moments econometric technique with unbalanced panel data of 46 countries in the Sub-Saharan African region covering the period from 1996 to 2019. Good governance plays a vital role in enhancing growth and development, especially, in reducing poverty. The paper ascertains that the problems of governance (corruption and political instability) and public expenditure aggravate poverty. As shown by the results of the marginal effect, governance – corruption and political instability – at both medium and minimum levels aggravates poverty. However, governance is insignificant at the maximum levels. This result suggests that corruption and political instability have a momentous role in mediating the consequences of government expenditure on poverty in the sample countries. Hence, combating corruption and enhancing political stability are crucial obligations of the government for it to witness not only straight progress in its economic performance but also an indirect impacts via poverty reduction.

Keywords

corruption; Governance; Government expenditure; political instability; poverty; Sub-Saharan Africa

JEL Codes

D720, D730, E620, H10, O150, R50
http://dx.doi.org/10.17576/JEM-2023-5701-09
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Bibliography

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Dankumo, Ali Madina and Ishak, Suryati and Auta, Yusuf and Denthe, Haruna Amos (2023). Impact of Public Expenditure on Poverty: Role of Governance. Jurnal Ekonomi Malaysia, 57(1), 113–126. http://dx.doi.org/10.17576/JEM-2023-5701-09

@article{dankumo2023impact,
  title={Impact of Public Expenditure on Poverty: Role of Governance},
  author={Dankumo, Ali Madina and Ishak, Suryati and Auta, Yusuf and Denthe, Haruna AmosDankumo, Ali Madina and Ishak, Suryati and Auta, Yusuf and Denthe, Haruna Amos},
  journal={Jurnal Ekonomi Malaysia},
  volume={57},
  number={1},
  pages={113—126},
 

year={2023},
}

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