The determinants of government expenditure in South Africa
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Authors
Maluleke, Glenda
Issue Date
2016-11
Type
Dissertation
Language
en
Keywords
Government expenditure , Poverty reduction , Urbanisation rate , National income , Population growth , Wage rate , Trade openness , Inflation rate , Error correction model
Alternative Title
Abstract
This study empirically examines the determinants of government expenditure in South Africa using annual data for the period from 1970 to 2014; and provides an overview of the South African government expenditure. The Johansen-Juselius co-integration test established that there is a long-run relationship between government expenditure and its determinants. The error correction model was used to examine the key determinants. The results of this study show that urbanisation rate, national income, poverty reduction; trade openness lagged one period and the wage rate significantly influence the size of government expenditure. Therefore, the study recommend that government create job opportunities; increase its expenditure in developing rural areas; and find ways to manage the public sector wage bill. The study concludes that population growth, inflation and trade openness in current period are not important in determining government expenditure in South Africa
Description
Citation
Maluleke, Glenda (2016) The determinants of government expenditure in South Africa, University of South Africa, Pretoria, <http://hdl.handle.net/10500/25402>