Following an extensive debate on alleviating poverty in developing countries, this paper focus on
how investment in public infrastructures could lead to poverty alleviation and consequently
economic development. This paper emphasized the market-based growth popular amongst donor
countries and looks at the issue from a direct approach to alleviating poverty through public
intervention in the economy. Using Co-integration and Granger causality test for the period
1981 to 2006, the findings revealed no existence of co-integrating vector in the series used.
Public infrastructure was found Granger cause GDP, but fiscal deficit does not Granger cause
GDP. Both RES and RESCS have strong causal effect on the real gross domestic product (GDP).
The paper ascertained that public infrastructure expenditure significantly alleviate poverty
directly through increase in gross domestic product (GDP). However, the paper maintained that
continuous increase in public infrastructure through increase in capital expenditure on
economic, social and community services and qualitative governance would alleviate poverty in