The Effect of Increasing Government Employment on Growth: Some Evidence from Africa

March 1, 1997

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James P. F. Gordon The Effect of Increasing Government Employment on Growth: Some Evidence from Africa, (USA: International Monetary Fund, 1997) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In contrast to the experience in industrial countries, government sectors in a number of African countries grew rapidly in relative size through the 1980s and early 1990s, implying a differential between measured GDP growth and growth of private sector activity. In these countries, the government sector was also an important source of employment growth. Leaving aside issues of crowding out, boosting growth in this way raises questions of fiscal sustainability. It also urges caution in interpreting growth performance.

Subject: Economic sectors, Employment, Government debt management, Labor, Production, Production growth, Public employment, Public financial management (PFM), Public sector

Keywords: Africa, Employment, GDP, GDP ratio, Government, Government activity, Government debt management, Government employment, Government growth boost, Government sector, Growth, Production growth, Public employment, Public sector, Wagner’s Law, WP

Publication Details

Pages:

15
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1997/033
Stock No:

WPIEA0331997
ISBN:

9781451979336
ISSN:

1018-5941

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