Bridging Borders for Shared Prosperity
The Spatial Effect of Public Spending on Inclusive Growth in Africa South of the Sahara
Bibliographic Data
| ID | 4796155 |
|---|---|
| Authors | Opeoluwa Adeniyi Adeosun (0000-0002-3965-9879, Department of Economics Obafemi Awolowo University Ile‐Ife Nigeria, corresponding author) |
| Year | 2025 |
| Volume | 76 |
| Issue | 259 |
| Pages | 163-178 |
| Publication date | 2025-06-21 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Social Science Journal (JOURNAL) |
| Journal identifiers | ISSN: 0020-8701 • E-ISSN: 1468-2451 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/issj.12591 |
| OpenAlex | W4411515760 |
| Language | EN |
| Citations received | 1 |
| References cited | 61 |
Modelling spatial interactions in macroeconomic analysis is crucial given interdependencies and spillovers arising from government policies, trade, population, investment and knowledge flows among neighbouring countries. This article tests the traditional spillover theory by investigating the spatial effects of government spending on inclusive growth among 39 contiguous countries in Africa South of the Sahara (SSA). Adopting the Spatial Durbin approach, the study establishes positive spatial effects of the total spending, education spending, investment spending and fiscal redistribution on inclusive growth, implying that spatial spillovers from neighbouring countries exist. The study observes that the indirect (spillover) effect of government spending outweighs the size of the direct effect, suggesting that inclusive growth is significantly influenced by the public spending of neighbouring and proximate countries. The finding affirms that if a country's government spending does not impact its growth, it affects its neighbour's growth, which in turn causes a secondary feedback effect on the focal country. The study affirms that spatial effects are significant drivers of inclusive growth in the region. The article recommends that policies should not be formulated in isolation, but a coordinated regional approach to public expenditure should be encouraged. It reiterates the need to strengthen regional economic integration, harmonize fiscal policies and foster cross-border investments to enhance the positive externalities from government spending in stimulating inclusive growth across SSA
Development economics · Economic growth · Economics · Externality · Fiscal policy · Fiscal space · Government (linguistics) · Government spending · Interdependence · Investment (military) · Macroeconomics · Market economy · Political science · Prosperity · Public economics · Public spending · Redistribution (election) · Spillover effect · Welfare · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization
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Introduction to Spatial Econometrics
Spatial Panel-data Models Using Stata
Decentralisation as an Incentive Scheme
Strategic Interaction Among Governments
Testing Weak Cross-Sectional Dependence in Large Panels
Lagrange Multiplier Test Diagnostics for Spatial Dependence and Spatial Heterogeneity
Assessing cross-sectional correlation in panel data
The Use of Ranks to Avoid the Assumption of Normality Implicit in the Analysis of Variance
Applied Spatial Econometrics
Budget spillovers and fiscal policy interdependence
IMF programs
General Diagnostic Tests for Cross Section Dependence in Panels
A simple panel unit root test in the presence of cross‐section dependence
Equality and Efficiency
Inclusive human development effect of financial inclusion in sub‐Saharan Africa
Public investment and inclusive growth in Africa
External Financing for Inclusive Growth in Lower - Middle Income West African Countries
Inequality in Asia and the Pacific
A review of theories and evidence of inclusive growth
Inclusive growth and inclusive development
Spatial interactions in property tax policies among Italian municipalities
Public investment and regional growth and convergence
Does Government Spending Affect Income Poverty? A Meta-regression Analysis
Infrastructural investment in long-run economic growth
| Unique citing works | 1 |
|---|---|
| Citations per year | 1 |
| Citation span | 2026 - 2026 (1) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 1 |