Abstract
The paper aimed to study the impact of government social spending with its various components (education, health, social care) on economic growth in light of the role of governance indicators. It considered the OIC countries' experience during the 1996- 2016 period and estimated an econometric model using the "Generalized Moment Method" (GMM). The World Governance Indicators (WGI) have been used to proxy for the governance variable. The results showed that: (i) there is a negative impact of government spending on education and health in the OIC countries, and an unstable effect of spending on social transfers on economic growth; (ii) there is an interaction between government social spending on the one hand and governance on the other hand, and that the effectiveness of government social spending increases in Islamic countries with good governance indicator; and (iii) there is a positive effect of the six sub- governance indicators- except for the “voice and accountability” indicator on economic growth, and on the effectiveness of social spending on education and health on economic growth.
Highlights
The paper aimed to study the impact of government social spending with its various components on economic growth in light of the role of governance indicators
The results showed that: (i) there is a negative impact of government spending on education and health in the OIC countries, and an unstable effect of spending on social transfers on economic growth; (ii) there is an interaction between government social spending on the one hand and governance on the other hand, and that the effectiveness of government social spending increases in Islamic countries with good governance indicator; and (iii) there is a positive effect of the six sub- governance indicatorsexcept for the “voice and accountability” indicator on economic growth, and on the effectiveness of social spending on education and health on economic growth
الحصول عليها لغرض التقدير. وقد اتضح مما سبق أن جزءا من هذه النتائج غير المتوقعة يرجع إلى الانخفاض العام للحوكمة في البلدان الإسلامية؛ بحيث يمكن القول معه إن الإنفاق الاجتماعي سيكون أكثرفعالية وتأثيرا على النمو الاقتصادي في البلدان ذات الحوكمة المرتفعة .وتأتي هذه النتائج متناسقة مع نتائج دراسات )(Filmer et al, 2000; World Bank, 2003 والتي أرجعت عدم فعالية الإنفاق العام إلى ضعف الاستهداف أو عدم الكفاءة المؤسسية الناتج عن تسرب الإنفاق العام وضعف قدرة المؤسسات وعدم كفاءتها ،وسوء إدارة الميزانية ) ،(Filmer et al, 2000; World Bank, 2003حيث أوضحت تقديرات تقرير منظمة الصحة العالمية ( )2010أن ما بين ( )%40 -%20من النفقات الصحية ُتهدر بسبب عدم الكفاءة ،وأن اتباع سياسات أفضل في مجالات الإنفاق على الصحة يمكن أن يزيد مردود الإنفاق (منظمة الصحة العالمية ،)2010 ،كما أشارت دراسة )(Pritchett, 1996إلى أن الفساد والمحسوبية )(Rajkumar, 2008: 98
Summary
The paper aimed to study the impact of government social spending with its various components (education, health, social care) on economic growth in light of the role of governance indicators.
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