- Title
- Examining the effect of government expenditure on economic growth in South Africa
- Creator
- Mafuya, Afika
- Subject
- Government spending policy -- South Africa
- Subject
- Economic development -- South Africa
- Subject
- South Africa -- Appropriations and expenditures
- Date Issued
- 2024-12
- Date
- 2024-12
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/70177
- Identifier
- vital:78308
- Description
- This treatise assesses the effect of government expenditure on economic growth in South Africa. The results of most extant empirical studies indicate that government expenditure has a negative effect on economic growth. Augmented Dickey-Fuller and Phillips-Perron tests were conducted to determine stationarity and order of integration. The ADF results indicated that government expenditure (GXE), government infrastructure expenditure (GEIE), government social infrastructure (GSIE), and GDP are stationary after first difference. The Johansen co-integration tests (maximum Eigenvalue and trace tests) indicated one co-integrating relationship between social infrastructure, economic infrastructure, government expenditure, and economic growth. VECM was estimated because of the presence of co-integration between variables for the period 1970-2021. The long run results indicate that government expenditure and economic growth have an effect, but the effect is very low as the speed of adjustment, 0.013% is also slow. on the other hand social infrastructure expenditure has a negative effect on economic growth. This study conducted diagnostic checks- the lagrange multiplier correlation test, normality tests and hetero-scedasticity tests to test the properties of the model and expenditure to components that contribute most the country's productivity and economic growth, which in this case is economic infrastructure.
- Description
- Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (65 pages)
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
- Rights
- All Rights Reserved
- Rights
- Open Access
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- Visitors: 9
- Downloads: 2
Collections
NMU School for Economics, Development and Tourism
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | MAFUYA, A.pdf | 1 MB | Adobe Acrobat PDF | View Details Download |