Fiscal Spending, Economic Growth and Entrepreneurship Development in Sub-Saharan Africa

  • Bashir O. Kolawole Department of Economics, Lagos State University, Nigeria
Keywords: Education, entrepreneurship, fiscal spending, panel data, youth empowerment


In the attempt to find solution to youth unemployment in Africa, several studies have been conducted. However, while the studies concentrate on how entrepreneurship impact growth, the extent to which growth propels entrepreneurship is overlooked. Thus, it is on this premise this paper examines the impact of fiscal spending and growth in fostering entrepreneurship development over the period 2009-2018 in SSA. By employing thesystem-GMM technique to estimate a single equation, the results show that each of fiscal spending on education, per capita income, banks credit to the private sector, and economic freedom averagely impacts positively on entrepreneurship development. Therefore, while economic growth is not impactful, it is concluded that fiscal spending fosters entrepreneurship development in SSA. Thus, an increased fiscal spending on education is suggested for youth empowerment in the region.


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