Impact of Government Expenditure on Poverty Eradication in West African Countries: A Panel Cointegration Approach

Abstract

While a debate is still ongoing in literature across the globe on the nexus between Government expenditure and economic development, the impact of government spending on poverty eradication remains partially explored. This study examined the effect of government expenditure on poverty alleviation in West African countries. The study utilized Panel Data for a period of 30 years, and a panel ARDL Cointegration approach was employed in analyzing the Data. The overall findings revealed that, government expenditure has a positive and significant effect on poverty alleviation in West African countries over the period of the study. The findings also revealed the existence of a long run relationship between government expenditure and poverty alleviation. The study recommended maximum government intervention through fiscal policy measures (Government Expenditure) to support the success of poverty alleviation programs in West African countries as a veritable tool of poverty eradication.