Journal of Economics and Development Studies

Public Expenses and Economic Growth in Congo
Antoine NGAKOSSO

Abstract
This article aims to proceed an econometric appraisal of the connection between the total public expenses and their components (capital from public expenses and current ones) and the economic growth in Congo from 1960 to 2013.We have therefore analyzed the links of causality according to GRANGER’s view and have carried out the valuation of the design on the long term and the pattern for correcting mistakes using the ordinary least square method (OLS) between those expenses and the economic growth. We have found out a mutual causality bond between the current public expenses and the economic growth. However, no causal link has been established between the investment expenses and the economic growth. But, according to GRANGER’s point of view, the total public expenses determine the economic growth. Moreover, our results point out that the investment expenses, the current and the total ones have positive impacts during a short term as well as in a long one when dealing with the economic growth in Congo.

Full Text: PDF     DOI: 10.15640/jeds.v4n1a9