Government Expenditure, Infrastructure and Economic Growth in West Africa (2004- 2024)
Oloruntuyi, A.O *
Department of Securities and Investment Management Technology, School of Logistics and Innovation Technology, Federal University of Technology, Akure, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study examined the relationship between government expenditure, infrastructure and economic growth and in West African Countries, using Ghana, Senegal, and Nigeria, between 2004 and 2024. The study used descriptive statistics, correlation analysis, fixed and random effects models, and employed secondary data from the World Bank, CBN, NBS, IMF Fiscal Monitor, and African Development Bank. The study showed that infrastructure spending (GOVEXP) has a statistically significant negative impact on economic growth with coefficient value of -0.2377, (p = 0.0372), the governance index (GOVNDE) has a positive but statistically insignificant impact on economic growth with coefficient (β = 1.8396, p = 0.6163), indicates that changes in institutional quality have a beneficial impact on growth, though not sufficiently to be definitive during the study period. Likewise, trade openness (TROPN) has a positive but negligible correlation with GDP growth (β = 0.0077, p = 0.8784), suggesting that while openness promotes growth, its effects may be mitigated by other structural factors as manufacturing capacity and export diversification, the inflation rate (INF) has a slight negative impact on economic growth with coefficient value of (β = -0.0513, p = 0.3351). Therefore, the study concluded that trade openness and infrastructure spending are essential elements of West African economic policy. The study recommended that West African nations to prioritize sectors of productive infrastructure, improve fiscal control, and promote macroeconomic stability in order to attain equitable and long-term economic growth.
Keywords: Economic growth, government expenditure, infrastructure, West African Countries