Public expenditure and economic growth in Benin

The objective of this study is to assess the influence of public spending on basic infrastructure on economic growth in Benin. In particular it aims to explain the influence of the composition of this public expenditure on economic growth. To this end we have highlighted a linear relationship between economic growth and public spending on basic infrastructure using an Error Correction Model (ECM). The results of our estimates show that public spending on basic infrastructure contributes to growth. We also note that public spending on health infrastructure had no impact on growth over the study period and that public spending on social infrastructure contributes more to economic growth than other types of spending.