GOOD GOVERNANCE, DEVELOPMENT EXPENDITURE AND ECONOMIC GROWTH: THEORETICAL REVIEW

Abstract

Inefficiencies in development expenditure have led to increased calls for more governance in Kenya. The quality of governance, more so good governance, has been fronted as a prerequisite for economic growth, hence its inclusion as a key influencing factor in the efficient management of development expenditures. This paper offers a background on good governance, public expenditure and economic performance. It also provides a theoretical and empirical overview on the relationship between good governance on development expenditures in Kenya by reviewing other literature on the topic. This paper concludes that promoting good governance in Kenya is significant in improving efficiency in development expenditures leading to economic growth. Also, the paper creates a platform where further insight can be provided through empirical research.