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Les Effets Non Lineaires Des Dépenses Publiques Sur La Croissance Économique En Rd Congo
[Nonlinear Effects Of Spending On Economic Growth In Dr Congo]

Author

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  • LONZO LUBU, Gastonfils
  • AVOM, Desiré

Abstract

The objective of this study is to evaluate the effect of public spending on economic growth in DR Congo. This is to highlight the non-linear effects of public expenditure on economic growth in the DRC. In view of the results of the econometric regression, there are non-linearities in the relationship between public spending and economic activity in the DRC. It was observed an optimal threshold of public expenditure in the DRC is 24% between 1961 and 2013 through the logic modeling endogenous thresholds, originally developed by Hansen (2000), it also appears to an external debt ratio 112% with a lower or equal to 2.3% budget balance, the state influences Keynesian economic activity in the DRC beyond these thresholds, the effect of public expenditure is not Keynesian or anti Keynesian.

Suggested Citation

  • LONZO LUBU, Gastonfils & AVOM, Desiré, 2014. "Les Effets Non Lineaires Des Dépenses Publiques Sur La Croissance Économique En Rd Congo [Nonlinear Effects Of Spending On Economic Growth In Dr Congo]," MPRA Paper 60716, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60716
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    References listed on IDEAS

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    More about this item

    Keywords

    government spending; economic growth; governance; Threshold Regression Models;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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