| dc.description.abstract | In the recent past, the debate on the role of governance and public expenditure composition in
fostering economic prosperity has been rife resulting to both theoretical and empirical studies
proliferation. A large number of these studies have been cross country or panel data based. This study therefore sought to analyze the effects of governance quality and composition of public
expenditure in Kenya using times series data. Using an OLS estimator, the two indicators of
governance are found to positively and statistically significant impact on economic
growth. The composition
of public spending in six categories of the economy namely;
defence, education,
health, agriculture, transport and communication and social protection is also reviewed. The empirical findings indicate education, transport and communication and health positively impact
on economic growth. The other outlays have negative impact on growth. The findings postulate it’s critical for developing countries like Kenya to seek the right mix of public spending levels and
ensure quality governance if the desired development outcomes and economic growth is to be realised | |
