Productivites and externalities of public spending in the WAEMU

The purpose of the present study is to estimate the public expenditure sector's respective roles in the 'productive' and 'non productive' components of the economy of WAEMU (West African Economic and Monetary Union) member states. An econometric analysis aims to reveal the externalities and/or relative factorial marginal productivity effects on the long-term economic growth rate. It appears that public capital expenditure positively affects relative factorial productivity but public consumption expenditure has no effect on economic growth. The study confirms the productive contribution of public infrastructures on GDP growth in the WAEMU area.