Panel data comparative analysis on the influence of population age structure on the size of government expenditure in Africa and Asia

Azolibe, Chukwuebuka Bernard

doi:10.1108/ijoem-04-2020-0440

Cited by 4 publications

(13 citation statements)

References 29 publications

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“…The chosen period is limited by the data availability of the ICT and institutional quality indices. Nevertheless, the selected variables are consistent with the literature (Jibir and Aluthge, 2019;Okafor and Eiya, 2011;Azolibe, 2020;Dianda and Ouedraogo, 2021) and economic theory. The primary data source for the analysis is the World Bank's (2022a) World Development Indicators.…”

Section: Data and Empirical Methodology 31 Data And Samplesupporting

confidence: 79%

“…To avoid the omitted variable bias (see Gujarati, 2003), the model follows the literature by adjusting equation (1) to include other control variables suggested in the literature to affect government spending. These are institutional quality, debt, inflation, GDP per capita and population growth rate (Okafor and Eiya, 2011; Azolibe, 2020).…”

Section: Data and Empirical Methodologymentioning

confidence: 99%

“…Studies such as Jibir and Aluthge (2019) have shown that inflation has an essential effect on public spending. Public spending grows with inflation; as prices increase, inflationary burdens impel the government to expand its spending (Azolibe, 2020). Hence, a positive relationship is expected between the rate of inflation and the provision of social services.…”

Section: Data and Empirical Methodologymentioning

confidence: 99%

“…Where Ins represents institutional quality; Deb stands for total debt; Inf stands for the rate of inflation; Gdpc represents GDP per capita; and Pop represents the population growth rate. The empirical model in equation ( 2) builds on the growing literature that uses crosscountry regressions and country-level data to explore the determinants of government spending (Okafor and Eiya, 2011;Azolibe, 2020). Further, the inclusion of ICT, institutional quality, GDP per capita, debt, inflation and population growth rate in the modeling framework accords with the general to specific modeling approach (Hendry et al, 2015).…”

Section: Empirical Modelmentioning

confidence: 99%

“…The GDP per capita measures the size of the economy; it is an essential factor for government spending (Azolibe, 2020). Wagner (1883) posited that increased per capita income leads to a rise in government spending.…”

Section: Empirical Modelmentioning

confidence: 99%

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ICT and the provision of social services in low-income countries: the moderating role of institutional quality

Evans

2022

JEC

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Purpose The purpose of this paper is to determine the effect of information and communications technology (ICT) on the provision of social services, as well as the moderating effect of institutional quality on the relationship between ICT and the provision of social services for 31 low-income countries. Design/methodology/approach This study is based on panel data from World Development Indicators and Worldwide Governance Indicators spanning 1996 to 2020 for 31 low-income countries. To analyze the data, the study uses cross-sectional dependence tests, slope heterogeneity tests, panel unit root tests, panel cointegration tests and cross-sectionally augmented autoregressive distributed lag (CS-ARDL) analysis. Findings The results overwhelmingly show that ICT has a significant positive effect on the provision of social services in both the short- and long-run. Also, the study reveals that institutional quality has a significant positive impact on the provision of social services in the short- and long-run. The results further provide empirical evidence of the positive and significant moderating effect of institutional quality on the relationship between ICT and the provision of social services. Practical implications This study points out the significant potential of identifying appropriate scales of ICT infrastructure and institutional quality needed to support the various governments in low-income countries to improve social services delivery mechanisms and outreach efficacy and impact. The study can be invaluable for ICT innovators and policymakers in promoting the provision of social services. Originality/value To the best of the authors’ knowledge, this study represents the first attempt to determine the effect of ICT on the provision of social services, as well as the moderating effect of institutional quality on the relationship between ICT and the provision of social services, especially for low-income countries using CS-ARDL.

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Section: Data and Empirical Methodology 31 Data And Samplesupporting

confidence: 79%

Section: Data and Empirical Methodologymentioning

confidence: 99%

Section: Data and Empirical Methodologymentioning

confidence: 99%

Section: Empirical Modelmentioning

confidence: 99%

Section: Empirical Modelmentioning

confidence: 99%

See 3 more Smart Citations

ICT and the provision of social services in low-income countries: the moderating role of institutional quality

Evans

2022

JEC

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Financial development in Africa: Do expenditure and population matter? Evidence through pooled mean group and generalized method of moments estimators

Kapaya

2023

J of Intl Development

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This article assesses the impact of government expenditure and population structure on financial development among selected African economies for a panel of 37 selected African economies from years 1980 to 2018. The pooled mean group regression estimator was used, which suitably isolates short run from long run impacts while allowing for heterogeneities and homogeneities for each run respectively. Additionally, generalized method of moments technique was applied for robustness check and allows for dynamism in the estimations. Findings show that financial development is sensitive to both productive and non‐productive government expenditures in the long run. They affirm positive impacts convergences on financial development. Financial development responds only to non‐productive expenditures in the short run. Young and elderly populations do not benefit financial development but mature population does due to its active role in the private sector. Further, it helps support the negative impact of inflation and provides positive impacts of economy openness and individual's economic output. Also, results support short‐run adjustment towards long‐run equilibrium. These results are significant both statistically and economically. Unlike former studies, this work comprehensively disaggregated government expenditure into productive and unproductive types. It isolated population structure age‐wise. In order to stimulate financial development, governments in Africa need to favour policies that stabilize government expenditures, having both short‐run and long‐run foci, encourage public–private partnership and mutually beneficial linkages, devise population policies based on respective age‐structures, and promote economy openness, and growth per capita, and control inflation.

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Government expenditure impacts on financial development: Do population age structures moderations matter?

Kapaya

2023

REPS

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PurposeThis study examined the roles of public spending and population moderating characteristic structure of selected African economies on bank-based financial development through credit to private sector.Design/methodology/approachThe study sampled 37 selected African economies for the years 1991–2018, and it applied a pooled mean group (PMG) estimator to account for short-run and long-run causal effects, and confirmed short-run adjustments towards the long-run convergences between the variables. Specific suitable tests were also applied.FindingsEvidence confirms positive impacts of both capital formation and final consumption expenditures on financial development in the short run and long run. The moderation of population structures on expenditure structures help to speed up convergences.Originality/valueThis work attests its innovation by accounting for the separate effects of the expenditure types, the moderation effects of young and mature populations for capital and final consumption expenditure on financial development among selected economies in Africa.

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Panel data comparative analysis on the influence of population age structure on the size of government expenditure in Africa and Asia

Cited by 4 publications

References 29 publications

ICT and the provision of social services in low-income countries: the moderating role of institutional quality

ICT and the provision of social services in low-income countries: the moderating role of institutional quality

Financial development in Africa: Do expenditure and population matter? Evidence through pooled mean group and generalized method of moments estimators

Government expenditure impacts on financial development: Do population age structures moderations matter?

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