Economic Impact of Public Expenditure in The Gambia

Thomas Roberts; FranÃ§ois J. Cabral; Samuel Coly

Economic Impact of Public Expenditure in The Gambia

Thomas Roberts * §

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FranÃ§ois J. Cabral

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Samuel Coly

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Cheikh Anta Diop University of Dakar.

Economic Impact of Public Expenditure in The Gambia

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Abstract

The impact of public expenditure on the productive sectors (agriculture, industry, and service) in The Gambia, is analyzed within the framework of a Dynamic Computable General Equilibrium (DCGE) model. The model is applied and calibrated to assess the impact of a 10% increase in public expenditure on economic growth and welfare over five years. The results indicate an increase in GDP and value-added, mainly as a result of growth in the service sector. Also, an expansion of the service sector leads to the migration of jobs to the rural areas, which will consequently enhance rural labour income. A significant finding is that general public expenditure on agriculture may not get the desired result for poverty reduction, specifically in rural areas. As a result, public agricultural spending should be targeted across various agriculture sub-sectors, such as, irrigation, among others. The Government of The Gambia (GoTG) should also prioritize investment in the service sector, given that it has immense potentials in enhancing the livelihoods of Gambians in rural areas.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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How to Cite This Article

Thomas Roberts, FranÃ§ois Cabral, Samuel Coly. 2020. "Economic Impact of Public Expenditure in The Gambia". Global Journal of Management and Business Research, Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 20 (GJMBR Volume 20 Issue B6).

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GJMBR Volume 20 Issue B6

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification JEL Code: O10

Submission ReceivedNovember 10, 2020
Peer Review Double Blind
Handling Editor
Accepted November 30, 2020
Published December 15, 2020

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v1.2

Issue date

May 30, 2020

Language

English

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