Public Education Funding and Economic Growth IN Nigeria; ARDL-VECM and Causal Inference Approach

Abstract

Considering the enormous impact of poor standard of educational system in Nigeria over the years, the study investigated the effects of public education funding on economic growth in Nigeria from 1985 to 2019. The paper used secondary data sourced from both Central Bank of Nigeria Statistical Bulletin and World Bank’s Development Indicators 2019. The paper employed Auto-Regressive Distributed Lag co-integration, Error correction mechanism and granger-causality tests as technique for data analysis. The ARDL bound test co-integration results revealed that RRETE, RCETE and Inflation have positive relationship with Economic growth. However, RETE, SEDU and PRI have indirect influence on Economic growth in Nigeria. Statistically, only RRETE has a long run causal effect on economic growth. ARDL Error Correction Regression output showed that RETE and RCETE are significant at 10% level while PRI is significant at 5% level this indicates the existence of short run causal relationship with the establishment of ECM long run equilibrium adjustment speed. The causal results revealed unidirectional inference between SEDU and RETE, PRI and RETE, PRI and RRETE with no feedback effect. Therefore, the study recommended educational funding targeted at secondary and primary education system in order to acquire productive skills and knowledge to stimulate economic growth and development in Nigeria. There is need to meet the UNESCO funding ratio for both recurrent and capital expenditure on education sector.

Globalization and politico‐administrative factor‐driven energy‐growth nexus: A case of South Asian economies

“…This contributes to boosting the net volume of exports and economic growth via the multiplier effect (Shakeel et al, 2014). The positive effect of energy consumption on economic growth in South Asian economies obtained from this study finding is consistent with M. S. Islam and Ali (2011); Alam et al (2012); Ouedraogo (2013); Mahalik and Mallick (2014); Marques and Fuinhas (2016); Esen and Bayrak (2017); Iheanacho (2018); Shahbaz et al (2018a); Sarker et al (2019); Topcu et al (2020); H. S. Ali et al (2020); M. M. Islam and Islam (2021) and Udemba et al (2021), who mainly established these findings based on the causal analysis in the context of different countries. This study finding is contradictory with Joyeux and Ripple (2007); Jumbe (2004); Lee (2005); Squalli (2007); Carfora et al (2019) and Sharma et al (2021).…”

“…There is a significant long-term positive impact of energy consumption on income growth whereas bilateral causal relations are detected among energy consumption, globalization, and income growth in Nigeria (Iheanacho, 2018). The positive correlation between globalization and energy use is found in the perspective of the Netherlands and Ireland (Shahbaz et al, 2018b).…”

“…In the case of 43 countries, the relationship between economic growth and energy use is positively impacted by the social, political, and economic dimensions of globalization (Marques et al, 2017). There is a significant long‐term positive impact of energy consumption on income growth whereas bilateral causal relations are detected among energy consumption, globalization, and income growth in Nigeria (Iheanacho, 2018). The positive correlation between globalization and energy use is found in the perspective of the Netherlands and Ireland (Shahbaz et al, 2018b).…”

“…Mallick (2014);Marques and Fuinhas (2016);Esen and Bayrak (2017);Iheanacho (2018);Shahbaz et al (2018a); Sarker et al (2019); Topcu et al (2020); H. S. Ali et al (2020); M. M. Islam and Islam (2021) and Udemba et al (2021), who mainly established these findings based on the causal analysis in the context of different countries. This study finding is contradictory with Joyeux and Ripple (2007); Jumbe (2004); Lee (2005); Squalli (2007); Carfora et al (2019) and Sharma et al (2021).…”

Does urbanization cause energy consumption amidst globalization and FDI in South Asia? A pooled mean group estimation

“…Marques et al (2017) found a significantly positive effect of economic, political and social globalization on the "ENC-economic growth" link for a panel of 43 countries. Iheanacho (2018) investigated the association between globalization, energy use and economic progress in Nigeria using data for the 1975-2011 period and an ARDL technique and reported a feedback association between globalization and energy use. Shahbaz et al (2018) applied the Quantile Autoregressive Distributed Lag model for two European economies, that is, The Netherlands and Ireland, and found that globalization is related to ENC positively in the long run.…”