University of Khartoum

The Relationship between Government Expenditure and Economic Growth in Sudan

The Relationship between Government Expenditure and Economic Growth in Sudan

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Title: The Relationship between Government Expenditure and Economic Growth in Sudan
Author: Ali,Hassan Hamza Esmail
Abstract: There are many theories conclude that government expenditures cause economic growth. However, the other considers that economic growth causes government expenditures. Another view considers the existence of a feedback relationship between government expenditures and economic growth. This research is an attempt to test empirically the relationship between government expenditures and economic growth in Sudan during the period 1973–2006. The Granger causality test, co – integration analysis are employed in this research to test the hypotheses The research results show that there is no causation between government expenditures and economic growth by assuming linear relation, but there is evidence for non-linear long–run relation. The Study recommended that: the state must orient the government expenditure to infrastructure to promote human capital, achieving and sustaining peace in whole country, as well as, reallocating financial resources from military sector to develop the marginalized areas in order to achieve Broad- based growth.
Description: 76 Pages
URI: http://khartoumspace.uofk.edu/handle/123456789/12949
Date: 2015-06-16


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