International Journal of

Business & Management Studies

ISSN 2694-1430 (Print), ISSN 2694-1449 (Online)
DOI: 10.56734/ijbms
Modelling Government Expenditure-Poverty Nexus for Ghana



The paper examines the effect of government expenditure on poverty incidence for Ghana during the period 1960 to 2013. Using the Johansen test (JH), Vector Error Correction (VECM) test, and the Ordinary Least Square (OLS), it is found that poverty incidence positively correlated with government expenditure. The implication of the finding is that poverty is not reducing with increase in government expenditure. Future studies should consider the issues of causality and structural break as well as panel study.