Government Expenditure (GE) is an instrument by which the State distributes resources with efficiency and responsibility. Several studies have analysed the relationship between GE and economic growth, as well as the relationship between inequality and GE by region. Studies in Africa have found a positive relationship between education and health spending with respect to economic growth, which means that the greater public investment in education and health, the greater the economic growth. In order to investigate these relationships for the Angolan case, we used the data available of the period from 1991 to 2011. This dissertation analysed the impact of different types of GE on economic growth. It was found the GE is not moving towards equilibrium of economic growth, therefore we do not have causality between different types of GE and economic growth. After this analysis of the effects of aggregate sectorial GE on the GDP growth rate of Angola we tried to understand the regional impact of GE. We concluded that the distribution policy across provincial GE is a vector that does not help to solve the inequality of income and consumption in the country. It happens that, in per capita terms, 17 of the 18 provinces receive 66% of the total funds allocated, while Luanda receives 34% of these funds. The relationship between inequality, poverty and GE is negative, which shows that the higher the per capita GE, the lower is inequality and poverty. The major challenge for the country is going through a better allocation of GE resources, in order to increase economic growth and to reduce poverty and inequality.
Date of Award | 2013 |
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Original language | English |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | Isabel Correia (Supervisor) & Pedro Rapouso (Supervisor) |
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Expenditure policy in Angola: impact on economic development and inequality
Delgado , A. D. R. (Student). 2013
Student thesis: Master's Thesis