The Effect of Public Expenditures Composition on Promoting Morocco’s Economic Growth Online First

Abstract

Public expenditures are an essential component of economic policy. It is used by governments as an operational tool to promote strong, sustainable growth, in particular to achieve the various sustainable development goals. This article aims to examine the effect of the composition of public expenditure on economic growth in Morocco. This subject is becoming increasingly important, as we consider that productive public expenditures have a lasting influence on economic growth. Our research methodology employs the Autoregressive Distributed Lag Bounds testing approach to identify the short-term and long-term effects of public expenditures composition on promoting economic growth. Our results show that in the long term, the effects of the various components of public expenditures on economic growth are positive, except that compensation expenditures have a negative effect on economic growth

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