Studying The impact of government spending on the economic growth in the developing countries

This research aimed to investigate and to measure the effect of government spending on the economic growth using cross sectional data on 85 developing countries average for the period     (2000 – 2019). The research used Ordinary Least Squares (OLS) method to estimate a multiple regression model linking the economic growth rate and government spending in addition to some other variables that affect on economic growth.
the study concluded that the government consumption expenditure (% of GDP), the government expenditure on health (% of GDP) and the government expenditure on education (% of GDP) had a significant negative effect on the economic growth in the developing countries during the period 2000-2019; while  the net government investment in nonfinancial assets (% of GDP) had a significant positive effect on the economic growth in the developing countries during the same period. it is also found that gross capital formation (% of GDP), employment to population ratio, inflation rate and foreign direct investment (% of GDP) had a significant positive effect on the economic growth in the developing countries during the period 2000-2019, i.e. the economic growth in the developing countries under study was determined by capital formation, employment ratio, inflation and foreign direct investment.
The study recommends that government spending should be restructured to stimulate economic growth in developing countries and standards should also be set to increase the efficiency of government spending.