Abstract
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.
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