Factors explaining public expenditure in WAEMU countries

Abstract

This article examines the factors explaining public expenditure in WAEMU countries over the period 2000-2020.  The Quantum Moment Regression (MM-QR) technique is used to assess how deciles of public expenditure change when exogenous variables vary. The results show that life expectancy at birth has a significant positive effect on all deciles of public expenditure. Similarly, public investment contributes significantly to an increase in public spending in WAEMU countries. However, the intensity of the effects of these variables decreases as public expenditure increases. Moreover, the intensity of the life expectancy effect is greater than that of public investment. As for the control variables, the results reveal that urbanization only affects the small amounts of public expenditure. On the other hand, the old age dependency ratio is significant only for large amounts of public expenditure.  To slow the increase in public spending, WAEMU states must encourage private investment through measures that strengthen the dynamism of the private sector