The Effect of Government Expenditure on Economic Growth in Kenya

Abstract

The study looked at how government spending affected Kenya's economic expansion. Government spending served as the study's independent variable, while economic growth served as the study's dependent variable. Exchange rates and inflation were the control variables. The study was based on the Keynesian theory as well as the theories of Peacock and Wiseman, Wagner, and Musgrave's Theory of Public Expenditure. The significance of the outcome under other conditions was utilized to test casualty. Secondary data sources from KNBS, CBK publications, and the World Bank provided the information for the entire study. Various diagnostic tests (multicollinearity autocorrelation, Homoscedasticity, and normality) were performed to ensure that the study did not violate the panel. Government spending served as the study's independent variable, while economic growth served as the study's dependent variable. Exchange rates and inflation were the control variables. The study was based on the Keynesian theory as well as the theories of Peacock and Wiseman, Wagner, and Musgrave's Theory of Public Expenditure. In the study, a causal research design was employed. The significance outcome under other conditions was used to test casualty. Secondary data sources from KNBS, CBK publications, and the World Bank provided the information for the entire study. Various diagnostic tests (multicollinearity autocorrelation, Homoscedasticity, and normality) were performed to ensure that the study did not violate the panel.