Government spending multiplier in developing countries

Abstract

This economic paper tries to demonstrate the government spending multiplier in Low Income Countries. At the beginning, we have identified the relevant factors make the multiplier weak in the developing countries such as composition of public spending and productivity factor, the quality of public spending, weaknesses of the local economic structure are the main elements causing some damages to the multiplier in emerging countries.
Subsequently, we used an input output model to analyze how any additional revenue (foreign aid) in the economy can benefit for the economy (input output matrix) Haiti 2012). We found there is a positive effect in the economy in the overall branches for every additional local currency ( 1 gourde) involved in the economy that change will ultimately increase in average the production of local economy by 1.20 gourde in outputs respectively for all branches in the economy (agriculture, extractive industry, trade, construction, manufacture of food products and beverages, and so one…)

Date of Award	31 Jul 2020
Original language	English
Awarding Institution	University of Namur
Supervisor	Marie VAN OVERBEKE (Supervisor) & Marie Seleck (Co-Supervisor)