The Effect of Government Sectoral Expenditure on Poverty Level in Kenya

The Effect of Government Sectoral Expenditure on Poverty Level in Kenya

Loyce V. Omari

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Willy Muturi

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Jomo Kenyatta University of Agriculture and Technology

The Effect of Government Sectoral Expenditure on Poverty Level in Kenya

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Abstract

This study investigated the effect of sectoral government expenditure on poverty level in Kenya. Private Consumption per capita, a measure of poverty, was the independent variable while education, health, agriculture and infrastructure expenditures were the independent variables. Time series data for the period of 1964-2010 was used and was tested for unit root using Augmented Dickey Fuller test whereby all variables were found to be integrated to I(1). A lag length of three was selected using Vector Autoregressive model. Presence of co-integration was confirmed using the Johansen test which showed there was one co-integrating equation. Vector Error Correction model indicated that there was a stable long run relationship between poverty level and sectoral government expenditure in Kenya. The regression results indicated that agriculture and health expenditures have a positive and significant effect on poverty level while infrastructure expenditure has a negative and significant effect on poverty level. The effect of education expenditure on poverty level was insignificant. It is recommended that the government in Kenya increases expenditure allocation to agriculture and health sectors.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite This Article

Loyce V. Omari. 2016. \u201cThe Effect of Government Sectoral Expenditure on Poverty Level in Kenya\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 16 (GJHSS Volume 16 Issue E2).

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GJHSS Volume 16 Issue E2

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Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification FOR Code: 729999p

Submission ReceivedDecember 12, 2015
Peer Review Double Blind
Handling Editor
Accepted January 1, 2016
Published January 15, 2016

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v1.2

Issue date

July 1, 2016

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Article Matrices

Total Score: 102

Country: Kenya

Subject: Global Journal of Human-Social Science - E: Economics

Authors: Loyce V. Omari, Willy Muturi (PhD/Dr. count: 0)

View Count (all-time): 195

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Publish Date: 2016 07, Fri

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Total Views: 4002

Total Downloads: 1867

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