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Impact of Public Expenditure on the Growth in Morocco: Role of Governance

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  • Tlaytmaste Bahaddi
  • Mohamed Karim

Abstract

The objective of this study is to evaluate the effect of the public expenditure on economic growth in Morocco and to assess the quality of governance impact on public spending by using the Error Correction Model following the approach of Johansen. In the light of the results of the econometric regression, good governance remains the best option that allows the Moroccan government to achieve considerable macroeconomic performance. In fact, the budgetary component of total public expenditure has a long-term positive impact on the economic activity. It can be a good strategy for Morocco to invest in governance, which proves to provide low-cost long-term benefits. Overall, good governance improves the effectiveness of the budgetary policy and exerts a positive and significant effect on economic activity in Morocco.

Suggested Citation

  • Tlaytmaste Bahaddi & Mohamed Karim, 2017. "Impact of Public Expenditure on the Growth in Morocco: Role of Governance," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(4), pages 12-19, April.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:4:p:12-19
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    References listed on IDEAS

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    1. Cosimo Magazzino, 2014. "Government Size and Economic Growth in Italy: An Empirical Analyses Based On New Data (1861-2008)," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 3(2), pages 38-54.
    2. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    3. Magazzino, Cosimo, 2012. "Wagner versus Keynes: Public spending and national income in Italy," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 890-905.
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    Cited by:

    1. Erum, Naila & Sohag, Kazi & Said, Jamaliah & Musa, Kazi & Asghar, Muhammad Mansoor, 2024. "Governance, fiscal expenditure, and economic growth in OIC countries: Role of natural resources and information communication technology," Resources Policy, Elsevier, vol. 90(C).
    2. Guilherme Correa Petry & Ely José Mattos, 2023. "The Effects of Public Expenditure on Municipal Development: A Dynamic Panel Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(2), pages 695-714, January.

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    More about this item

    Keywords

    fiscal policy; governance; growth;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

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