Impacto dos gastos do governo no crescimento e desenvolvimento económico de Moçambique - o papel da qualidade das instituições 1996-2020

Abstract

Economic literature suggests that the performance of an economy depends on the level of quality of institutions, showing that a solid institutional structure has the potential to improve the allocation of public resources and generate economic growth and development. However, despite the existence of empirical studies on the relationship between government spending and economic growth in Mozambique, the issue of economic development and the quality of institutions is not explored. In this regard, this research sought to analyse the role that the institutional quality play in the impact of government spending on Mozambique's economic growth and development. To this end, the study was based on the quanti-qualitative method, using bibliographical research and the use of a time series covering the period of 1990 - 2020. Using the VAR model, the results revealed that the institutional quality exerts a fundamental role in the impact of government spending as this interaction has a positive and statistically significant effect on both growth and economic development. In effect, the study shows that there is evidence that the presence of good institutions provides an environment for the good management of public assets, which can interfere with Mozambique's economic performance.