Impact of public expenditure on poverty: role of governance

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 pl...

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Main Authors: Ali Madina Dankumo, Suryati Is`Hak, Yusuf Auta, Denthe, Amos
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2023
Online Access:http://journalarticle.ukm.my/22006/1/JeM_9.pdf
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author Ali Madina Dankumo,
Suryati Is`Hak,
Yusuf Auta,
Denthe, Amos
author_facet Ali Madina Dankumo,
Suryati Is`Hak,
Yusuf Auta,
Denthe, Amos
author_sort Ali Madina Dankumo,
collection UKM
description 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.
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spelling ukm.eprints-220062023-08-07T03:19:45Z http://journalarticle.ukm.my/22006/ Impact of public expenditure on poverty: role of governance Ali Madina Dankumo, Suryati Is`Hak, Yusuf Auta, Denthe, Amos 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. Penerbit Universiti Kebangsaan Malaysia 2023 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/22006/1/JeM_9.pdf Ali Madina Dankumo, and Suryati Is`Hak, and Yusuf Auta, and Denthe, Amos (2023) Impact of public expenditure on poverty: role of governance. Jurnal Ekonomi Malaysia, 57 (1). pp. 1-14. ISSN 0127-1962 https://www.ukm.my/jem/view-articles/
spellingShingle Ali Madina Dankumo,
Suryati Is`Hak,
Yusuf Auta,
Denthe, Amos
Impact of public expenditure on poverty: role of governance
title Impact of public expenditure on poverty: role of governance
title_full Impact of public expenditure on poverty: role of governance
title_fullStr Impact of public expenditure on poverty: role of governance
title_full_unstemmed Impact of public expenditure on poverty: role of governance
title_short Impact of public expenditure on poverty: role of governance
title_sort impact of public expenditure on poverty role of governance
url http://journalarticle.ukm.my/22006/1/JeM_9.pdf
work_keys_str_mv AT alimadinadankumo impactofpublicexpenditureonpovertyroleofgovernance
AT suryatiishak impactofpublicexpenditureonpovertyroleofgovernance
AT yusufauta impactofpublicexpenditureonpovertyroleofgovernance
AT dentheamos impactofpublicexpenditureonpovertyroleofgovernance