Model of public investment expenditure dynamics in less developed countries, the Kenyan case

In this article, the author argues that the emphasis on implementing a target level of public investment has been at the expense of the productivity which ongoing projects were designed to realize. In section II, he outlines a model of public sector growth that embodies this induced expenditure relationship. By examining the consistency of the desired and feasible levels of public investment, it can be used to gauge the fiscal restrictions implied by the recurrent commitments of an LDC"s development program. In section III, he applies this model to the current development experience of Kenya to illustrate the magnitude of budgetary overexpansion that may have occurred. In section IV, he extends the model to incorporate varying levels of productivity from public sector investments, and public sector inflation. The author concludes in section V with a short discussion on the applicability of the model in general.