Analysis of sectoral public expenditures governance and their impact on economic growth

Public expenditures are of great interest to all economic agents. Sectorial public expenditures are of great interest to policymakers. In this regard, the main aim of this study is to highlight the importance of public expenditures in the case of Kosovo and to measure the impact of sectorial public expenditures on economic growth. The data used are secondary and cover the period 2015–2022. The data are obtained from the Agency of Statistics in the case of Kosovo. The econometric model used in the process of the estimation of the impact of sectorial expenditures in economic growth is ordinary least square (OLS) and Pearson correlation. The results indicate that public expenditures on education positively impact the economic growth in the case of Kosovo followed by the general services. Other variables showed p-values greater than the condition alpha less than 0.05 and thus are not interpreted in the study. The impact of the different types of government spending on gross domestic product (GDP) varies (Alam et al., 2022). There have been intense discussions among academics over the rationale behind the ongoing rise in government spending over the past three decades, as there has been no corresponding improvement in any of the recognized metrics of progress (Onabote et al., 2023). The study comes with further recommendations in order the public sectorial expenditures to be more useful in line with the impact on economic growth.