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[id] => 8472
[paper_index] => EW201611-01-001313
[title] => EFFECT OF GOVERNMENT INFRASTRUCTURE INVESTMENT ON ECONOMIC GROWTH IN SUB-SAHARAN AFRICA: EVIDENCE FROM NIGERIA, SOUTH AFRICA AND GHANA (1980-2013)
[description] =>
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[author] => Dr. Michael C. Obialor
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[doi] =>
[year] => 2017
[month] => February
[volume] => 5
[issue] => 2
[file] => eprapub/EW201611-01-001313.pdf
[abstract] => This study examines the effect of government infrastructure expenditure on the economic growth of three Sub-Sahara African (SSA) countries of Nigeria, South Africa and Ghana from 1980 to 2013. The objective is to analyze the growth effect of three infrastructure variables of communication, power and railways on the economies of these countries; Secondary data are sourced from World Development Indicators (WDI) online Database and analyzed, using Co-integration techniques and Vector Error Correction mechanism (ECM), at 1% and 5% significance levels. The results indicate that two out, of the three infrastructure proxy variables (communication,(GFCOM), and railway, (GFRAIL) show significant positive effect on growth only in South Africa, implying that infrastructure gaps exist in SSA;). This study concludes that the economies of SSA countries still exhibit the potentials for enhanced economic growth in the long run judging from the VECM test results. The study recommends increased budgetary allocations, as well as to access both concessional and non-concessional loans to finance infrastructure gaps.
KEYWORDS: Government Infrastructure Expenditure, Infrastructure Gaps, Economic Growth, Cointegration and Vector Error Correction Model, Sub-Sahara African, Economies.
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