• Li Chen Sharpe University of Taipei
  • Dr. Wang Uhlig Conrad University of Taipei
  • Dr. Zhang Juniper Palley, PhD University of Taipei


Purpose of the study: Taiwan is among the presently industrialized nations. Government expenditure is regarded as one of the critical factors that increase the economic development of a region. Thus, the study sought to examine the impact of government expenditure on economic development in Taiwan.

Research methodology: The study was literature based. The study relied on the literature review to make inferences.

Findings: Government expenditure has a positive effect on economic development. Government nourishes economic infrastructure to facilitate economic development, improve resource allocation and enhance private sector productivity. Government expenditure provides subsidies, free education and healthcare facilities to the people and impacts economic development. Government expenditure can reduce the cost of doing business due to the developments of the infrastructure. Government expenditure on the education system can increase the skills and competency of the people, thus enhancing production efficiency, translating to significant economic development.

Conclusion: Government expenditure significantly impacts economic development. The expenditure on the health sector, security, infrastructure and other amenities significantly increases business activities, thus stimulating economic development. Hence, government expenditure has a significant impact on the economic development in Taiwan.

Recommendations: It is recommended that government expenditure by the Taiwan government should be increased. The government should only spend when there is a need to stay away from generating inflation in the country. The government needs to intensify efforts to make sure that resources are effectively managed and invested in productive areas and diversification of the economy to improve productive tasks and increase economic development. Also, there is a need to have a high level of transparency and accountability of government spending in different areas to avoid directing public funds into the personal accounts of government officials and employees.

Keywords: Government expenditure, economic development, Taiwan

Author Biographies

Li Chen Sharpe, University of Taipei

Postgraduate Student, University of Taipei

Dr. Wang Uhlig Conrad , University of Taipei

Lecturer, University of Taipei

Dr. Zhang Juniper Palley, PhD, University of Taipei

Lecturer, University of Taipei


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How to Cite
Sharpe, L. C., Conrad , W. U., & Palley, Z. J. (2022). IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC DEVELOPMENT IN TAIWAN. African Journal of Emerging Issues, 4(7), 1 - 10. Retrieved from