Functional Government Spending, Unemployment and Poverty Reduction in Nigeria

Falade, Olanipekun Emmanuel; Babatunde, David

doi:10.15640/jeds.v8n1a9

Cited by 2 publications

(2 citation statements)

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“…Saraireh (2020) showed that government expenditure has an unemployment-reducing effect in the long run but an unemployment-worsening effect in the short run in Jordan. In a similar study, Falade and Babatunde (2020) showed that both recurrent and capital expenditure reduces unemployment and poverty in Nigeria whereas unemployment and recurrent expenditure have no significant impact on poverty. Similarly, Nepram et al (2021) revealed that non-developmental expenditure has more unemploymentworsening effect than developmental expenditure.…”

Section: Government Expenditure and Unemploymentmentioning

confidence: 93%

Government expenditure and unemployment nexus in Nigeria: Does institutional quality matter?

Raifu,

Aminu,

Afolabi

et al. 2024

Journal of Public Affairs

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This study investigates the role of institutional quality in the government expenditure‐unemployment nexus in Nigeria using different components of government expenditures (total, recurrent, and capital expenditures). Causality tests and the autoregressive distributed lag estimation methods are used to analyse data spanning the period from 1984 to 2019. The key findings are as follows: (i) unidirectional causality runs from unemployment to total and capital expenditure and a partial unidirectional causality runs from recurrent expenditure to unemployment; (ii) total and capital expenditures are pro‐employment in the long run, while the recurrent expenditure is only pro‐employment in the short run; (iii) institutional quality is detrimental to employment in the long run; and (iv) institutional quality significantly moderates the impact of government expenditure on unemployment in Nigeria. The Nigerian government need to increase pro‐employment expenditure and make concerted efforts at improving the institutional quality in Nigeria.

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Section: Government Expenditure and Unemploymentmentioning

confidence: 93%

Government expenditure and unemployment nexus in Nigeria: Does institutional quality matter?

Raifu,

Aminu,

Afolabi

et al. 2024

Journal of Public Affairs

View full text Add to dashboard Cite

show abstract

“…Falade and Babatunde investigate the effects of government spending on unemployment and poverty in Nigeria [7]. Government spending was disaggregated into its capital and recurrent components for the period 1980-2017.…”

Section: Literature Reviewmentioning

confidence: 99%

Public expenditure profile and Economic dynamism in Nigeria: A quasi general equilibrium analysis

2022

JERR

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Government expenditure plays a strategically important role in economic growth and development of nations. Its contributions includes boosting economic growth, employment generation, increase in income, higher standard of living, reduction in income inequalities, increasing private initiative and boosting of regional balance. This paper studies the effects of government expenditure on inflation, unemployment, consumption and investment by analyzing four different models. The paper asks the question of what happens after government expenditure? Is the effect of government expenditure on selected variables of interest positive or negative? What shall government do to ensure that its own expenditure profile is development oriented not otherwise? The methods of analysis used for the study are ARDL Error Correction Model and Granger causality test using data for the period 1981 to 2020. Diagnostic tests that include lag order selection test and ADF stationarity test were conducted. The long run results show that both recurrent and capital expenditures have negative effects on inflation but positive effects on investment. The results also show that capital expenditure contribute to reducing unemployment. The long run result also show negative effects of both types of expenditures on consumption. But the results of the short run analysis show that both types of expenditures have positive effects on consumption. They also have positive effects on inflation in the short run. Recurrent expenditure reduces unemployment in the short run. But, government expenditure did not influence investment in the short run.

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Functional Government Spending, Unemployment and Poverty Reduction in Nigeria

Cited by 2 publications

References 0 publications

Government expenditure and unemployment nexus in Nigeria: Does institutional quality matter?

Government expenditure and unemployment nexus in Nigeria: Does institutional quality matter?

Public expenditure profile and Economic dynamism in Nigeria: A quasi general equilibrium analysis

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