ABSTRACT
This paper analyzes the effects of public expenditure thresholds on the sectoral contribution to GDP growth with particular emphasis on the three macro-sectors of the economy (agriculture, industries and services). It appears that when public expenditure in the “agriculture” sector is less than 1.22% of national GDP, it has an insignificant and negative effect on the contribution of this sector to growth. But beyond this threshold, the increase in productive expenditure in this sector has a significant effect on its production and therefore on economic growth. Public expenditure in the “industries” sector must be less than 0.25% of GDP to improve the sector’s contribution to growth. Beyond this level, the effects become negative. With regard to services, estimates show that a positive and significant effect on the contribution of this sector to economic growth is only obtained beyond the threshold of 2.5% of GDP. Below this level, public spending has no significant effect.
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