Effect of Public Expenditure on Economic Growth in the Case of Ethiopia

Table 2

Definition and classification of variables.

Description of variables	Definition of variables	Type of variables	Expected sign
RGDP	The percentage rate of increase in gross domestic product	Continues dependent	—
Education (gexpedu)	The share of expenditure in education to total government expenditure	Continuous independent	+ve
Health (gexphe)	The share of public expenditure on health to total government expenditure	Continues independent	+ve
Agriculture (gexpagri)	The share of total government expenditure on agriculture	Continues independent	+ve
Defense (gexpdef)	The fraction of expenditure on defense against the gross government expenditure	Continues independent	−ve
Investment (gexpinv)	It is provided by government total capital expenditure to improve the country’s infrastructures	Continues independent	+ve
Consumer Price Index (CPI)	The consumer price index is a measure that examines the weighted average of prices of a basket consumer goods and services	Continues independent	−ve