This study verifies the validation of Wagner’s theory and Keynes's hypothesis between three main government expenditure components (Health expenditure, education expenditure, and capital investment expenditure) and economic growth in Nigeria and Angola. The study employs Johansen cointegration and pairwise granger causality as the estimation techniques. Findings revealed no evidence of long-run relationships with government expenditure components of health, education, and capital investment and economic growth. The study equally reveals the validation of Wagner’s theory between growth and expenditure on health in both Nigeria and Angola. Evidence that confirms both Wagner’s theory and Keynes's hypothesis between growth and expenditure on education in Angola and validation of only Keynes hypothesis in Nigeria was found. Also, the study confirms the validation of Keynes's hypothesis between government expenditure on capital investment in both Nigeria and Angola
Developing countries are often faced with poor infrastructure and inadequate social welfare. It is debatable how much of these are needed for growth and what role institutional quality plays. Previous studies over decades have identified the significance of infrastructure in the growth and development of countries and regions, with most research focussing on the effect of aggregate infrastructure on economic growth. The literature on infrastructure’s role in economic growth is extended by the inclusion of access to electricity, the internet, and water supply and their effect on economic growth using recent data from 2006 to 2020 on ECOWAS countries. A structural model of growth is built with consideration of the role of institutional quality at the regional level. A one-step difference Generalized Method of Moments (GMM) estimation technique is employed to control the issue of endogeneity resulting in a negative relationship between physical infrastructure and growth. The pooled panel result reveals that interaction between infrastructural and institutional quality negatively impacts economic growth, while variant estimates of government effectiveness as an institutional quality have a positive impact on growth.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.