Navigating the economic landscape: A comprehensive analysis of government spending, economic growth, and poverty reduction nexus in Tanzania

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dc.contributor.authorKitole, Felician A.
dc.contributor.authorMsoma, Liberati J.
dc.contributor.authorSesabo, Jennifer K.
dc.date.accessioned2024-05-03T10:19:18Z
dc.date.available2024-05-03T10:19:18Z
dc.date.issued2024
dc.descriptionPaper presented to the Applied Economics Letters of 2024
dc.description.abstractThis study delves into the intricate nexus between government expenditure, GDP per capita, and poverty reduction in Tanzania. Employing Granger causality analysis, Vector Autoregressive (VAR) and Vector Error Correction Model (VECM) on the World Bank dataset spanning from 1990 to 2022 the study unveils dynamic relationships and crucial insights for policymaking towards poverty free society. The findings underscore significant directional causation between government expenditure and GDP, underscoring their pivotal roles in poverty alleviation. Furthermore, the study reveals that while an increase in gross domestic per capita initially reduces poverty, it exacerbates its prevalence in the long run. Conversely, government spending emerges as a consistent force in reducing poverty across both short and long-run periods. These results emphasize the imperative need for Tanzania and other developing nations to comprehend these interconnected factors, facilitating the formulation of effective strategies that foster inclusive growth and propel the nation towards sustainable development.
dc.description.sponsorshipPrivate
dc.identifier.citationAPA
dc.identifier.urihttps://doi.org/10.1080/13504851.2024.2302902
dc.identifier.urihttps://scholar.mzumbe.ac.tz/handle/123456789/726
dc.language.isoen
dc.publisherApplied Economics Letters
dc.subjectGovernment expenditure
dc.subjectPoverty
dc.subjectsustainable development
dc.subjectTanzania
dc.titleNavigating the economic landscape: A comprehensive analysis of government spending, economic growth, and poverty reduction nexus in Tanzania
dc.typeArticle
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