Public Capital Expenditure, Economic Growth and Foreign Direct Investment in Nigeria: An Empirical Analysis

Azolibe, Chukwuebuka Bernard

doi:10.1353/jda.2021.0067

Cited by 2 publications

(5 citation statements)

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“…Consistent with recent EP literature (Acheampong et al , 2021; Apergis et al , 2021; Nguyen and Su, 2021a; Nguyen and Su, 2021b), we used five variables to proxy EP, namely, access to electricity, urban electrification, rural electrification, renewable electricity output and renewable energy consumption. In line with related studies (Onifade et al , 2020; Azolibe, 2021), the study also used PCE. Nigerian policymakers have used PCE to support development plans and projects (including the energy sector).…”

Section: Methodsmentioning

confidence: 99%

“…First, to our knowledge, this inquiry is the first in Nigeria to explore the effects of PCE on EP. The positioning of the study also differs considerably from a strand of public expenditure literature in Nigeria which have majorly concentrated on inter alia: public expenditure and quality of life (Jeff-Anyeneh et al , 2020; Adegboyo, 2020; Jideofor et al , 2021); public expenditure and economic growth (Onifade et al , 2020; Aluthge et al , 2021) and public expenditure and investments (Usman and Abdulsamad, 2017; Azolibe et al , 2020; Azolibe, 2021). Second, unlike the only other study in this field (Nguyen and Su, 2021a), which focused on 56 developing nations and employed four energy access indicators as EP proxies, this study looks at Nigeria with additional EP indicators.…”

Section: Introductionmentioning

confidence: 96%

“…Government policies such as public capital expenditure (PCE) present a crucial option for reducing EP (Nguyen and Su, 2021a). PCE refers to funds set aside for specified long-term capital projects (Azolibe, 2021).Thus, it is an important part of economic policy used as an operative policy instrument to encourage auspicious development outcomes (Azolibe, 2021). Keynes (1936) pioneered the importance of public spending for growing the economy and expanding welfare benefits, observing that government spending boosts general economic activity for development purposes.…”

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Does public capital expenditure reduce energy poverty? Evidence from Nigeria

Dimnwobi

Onuoha²,

Uzoechina

et al. 2022

IJESM

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Purpose Given the ever-growing fiscal commitments of Nigeria and her chequered history of electricity generation and distribution, the fortunes of the energy sector in the country have been affected by the prevalence of energy poverty. Government policies such as public capital expenditure (PCE) present a crucial option for reducing energy poverty in Nigeria, providing the purpose of this study. Design/methodology/approach To investigate the relationship between government capital spending and five distinct energy poverty proxies, this research applies the Bayer–Hanck cointegration system and the auto-regressive distributed lag (ARDL) bound test. Findings The findings indicate that public capital spending in Nigeria worsens energy poverty by reducing access to electricity, urban electrification, renewable energy consumption and renewable electricity generation, with a positive but insignificant influence on rural electrification. Originality/value This inquiry presents a pioneering investigation of the nexus between PCE and energy poverty in Nigeria. Also, aside from the variables of energy poverty adopted by existing studies, this study incorporates renewable energy consumption and renewable electricity output with implications for energy poverty and sustainable development.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 96%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Does public capital expenditure reduce energy poverty? Evidence from Nigeria

Dimnwobi

Onuoha²,

Uzoechina

et al. 2022

IJESM

View full text Add to dashboard Cite

show abstract

“…Another variable whose efect on electricity losses has received less empirical analysis is long-term capital investments [26]. Such investments improve the living conditions of citizens by increasing access to electricity [27].…”

Section: Introductionmentioning

confidence: 99%

Determinants of Electricity Transmission and Distribution Losses in South Africa

Powanga

Kwakwa

2023

Journal of Renewable Energy

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The increased electricity demand amidst inadequate electricity generation in South Africa has plunged the country into frequent power outages and load shedding. However, the country still has the lowest electricity transmission and distribution losses in sub-Saharan Africa. Despite low losses, there is still an opportunity to reduce losses further and reduce power outages and load shedding. This study examines the determinants of electricity transmission and distribution losses in South Africa. The results will inform policymakers on avoiding higher electricity transmission losses to alleviate the current electricity shortfall. Using the time-series data from 1971–2020 and the autoregressive distributed-lag (ARDL) bounds testing approach to cointegration, the study confirmed a long-run relationship between electricity transmission, distribution losses, and income, price, investment, political regime, and economic integration. Regression analysis from the ARDL methods revealed that investments, political administration, and economic integration positively influence electricity transmission and distribution losses. At the same time, income reduces electricity transmission and distribution losses in the long run. However, income, price, and economic integration minimize electricity transmission losses in the short run while the remaining variables maintained their positive effects. The implication is that without proper checks in place, an expansion in South Africa’s economic integration, investment, and democracy may negatively affect the electricity sector of the country through an increase in electric power losses, while higher income will help the industry via lower electric power losses. The paper, among other things, recommends building a robust economy to ensure lower levels of electricity transmission and distribution losses.

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Public Capital Expenditure, Economic Growth and Foreign Direct Investment in Nigeria: An Empirical Analysis

Cited by 2 publications

References 0 publications

Does public capital expenditure reduce energy poverty? Evidence from Nigeria

Does public capital expenditure reduce energy poverty? Evidence from Nigeria

Determinants of Electricity Transmission and Distribution Losses in South Africa

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