The Contribution of Government Expenditure on Economic Growth of Nigeria Disaggregated Approach

Iheanacho, Eugene

doi:10.4172/2162-6359.1000369

Cited by 38 publications

(47 citation statements)

References 19 publications

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“…Olakalns [24] examined the trend of government expenditure in the United Kingdom and found some in stances where the ratio of government expenditure to GDP displayed structural break. Iheanacho [25] examined the long and short run relationship between public expenditure and economic growth in Nigeria over the period of 1986-2014, using Johansen cointegration and error correction approach. The result shows that, recurrent expenditure is the major driver of economic growth in Nigeria.…”

Section: Literature Reviewmentioning

confidence: 99%

Nigeria Government’s Expenditure on Economic and Social Service Development: A Canonical Correlation Analysis Approach

Akano

Adams

2019

ACRI

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The study examine the effect of Government’s expenditure on economic and social services development in Nigeria over the period of 1961 to 2018. The study used Canonical Correlation Analysis, the test carried out include; Structure Vector for Economic and social Service and Redundancy Index. The result reveals that strong positive relationship exists between national recurrent expenditure and economic service and Social service. The study also discover that Nigeria Government placed more emphasis on other economic services like; Oil and gas, trade, infrastructure and manufacturing, followed by Transport and Communication, Construction, and Agriculture being the least. In the case of the Social service, it was discovered that Nigeria Government placed more emphasis on other social services like; food subsidies, police, fire services, housing, community management, policy research, information and labour, followed by Health, and Education being the least. Based on the findings, the study recommends that, all tiers of government and policy makers should implement policies that will aid improvement in Transportation and Communication, Construction, Agriculture, Health and Education.

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Section: Literature Reviewmentioning

confidence: 99%

Nigeria Government’s Expenditure on Economic and Social Service Development: A Canonical Correlation Analysis Approach

Akano

Adams

2019

ACRI

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“…Empirically, a considerable amount of positive evidence on the effects of education on growth has been generated ( See Barro 2001;Petrakos et al 2007;Lawanson 2009;Dauda 2010;Omojimite 2012;Mercan & Sezer 2014, Grant 2017, Usman & Adeyinka, 2019. On the other hand, investigations by Mitchell, (2005), Yildirim et al (2011), Gisore, et al (2014), Jaiyeoba (2015) and Iheanacho, (2016) among others are in sharp contrast with studies that validated positive education-growth nexus. Zivengwa (2012) suggested that what is worthy of note is the transmission channels through which education impacts growth.…”

Section: Introductionmentioning

confidence: 92%

“…Among the variable employed, education expenditure was found to have an insignificant and negative impact on economic growth. Similarly, Iheanacho (2016) examined the short-run and long-run effects of government education expenditure on economic growth in Nigeria using data between 1988 and 2014. The study revealed a negative relationship between education expenditure and economic growth in Nigeria when government expenditure on education was disaggregated into capital and recurrent expenditure.…”

Section: Theoretical and Empirical Review Of Literaturesmentioning

confidence: 99%

Education Expenditure-Led Growth: Evidence from Nigeria (1980-2018)

Lawanson¹,

Umar²

2020

IBR

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This study examines the belief that education fosters economic growth by analyzing the impact of Government education expenditures at different levels on economic growth using Nigerian data for the period 1980-2018. Time series econometrics tests like Unit Root, cointegration, Error Correction Model and Granger Causality were employed to test the hypothesis of education expenditure-led growth strategy. The outcomes of the studies showed that that there is cointegration between total government education expenditures, primary, secondary and tertiary education expenditure and economic growth. The outcomes of the study also revealed that all levels of education expenditure contribute to economic growth positively (tertiary education exerting more positive impact) and are statistically significant (except primary education expenditure that is not significant) at 5%level. The study equally revealed bi-directional causality between t all levels public expenditure on education and economic growth. The study therefore, recommends improved funding for education at all levels given their interconnections. It also recommends that funding of primary education should by supported Federal Government as weak primary school funding will impact on quality of pupils that graduate to secondary school. Again policies aimed at diversifying and broadening the Nigerian economy be rekindled as economic growth have the potential of increasing education spending.

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“…Government expenditure in Nigeria, as noted by Iheanacho (2016), has been rising rapidly, with such recurring increase evidenced in almost all the sectors of the economy. A cursory breakdown of the 2019 appropriation bill of Nigeria shows that the Federal Government seeks to spend USD 24.41 billion, which is about 2.5% higher than the 2018 estimates, whose proposed size of USD 23.8 billion was 16% higher than the 2017 estimates.…”

Section: Introductionmentioning

confidence: 99%

“…Given that the government's major concern, as noted earlier, is primarily the welfare and living conditions of the masses, which statutorily determines the government's spending pattern. A colossal amount of concern keeps lingering over the skyrocketing and superfluous government spending in Nigeria, yet the masses keep languishing in abject poverty (Iheanacho, 2016;Oyinlola & Akinnibosun, 2013). It becomes even more worrisome to discover that many past administrations have spent so much on capital and recurrent expenditures, yet the results remain infrastructural gaps and impoverishments (Oteng-Abayie, 2011; Adekunle, 2007).…”

Section: Introductionmentioning

confidence: 99%

The rising government expenditure in Nigeria: Any influence on growth?

Segun¹

2019

EurJ Appl Econ

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This study attempts to examine whether government expenditure in Nigeria has had any influence on growth in the economy. The study focuses primarily on capital and recurrent types of government expenditure, and these were regressed against the real gross domestic product. Secondary time series data ranging from 1981 to 2016 obtained from the CBN Statistical Bulletin were used. Having established that the series were co-integrated in the long run through the Cointegration technique of Johansen, the study then used the error correction and Granger causality techniques to achieve its objectives. Results indicated that recurrent expenditure exerts a significant positive influence on real GDP, while the influence of capital expenditure on real GDP turned out negative. The Granger causality test revealed that both capital and recurrent expenditures Granger cause real GDP. The study, therefore, advocates for a strong monitoring and evaluation system of the way in which government funds, especially those intended for capital projects, are being used, so as to bring about a meaningful influece on the economy.

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The Contribution of Government Expenditure on Economic Growth of Nigeria Disaggregated Approach

Cited by 38 publications

References 19 publications

Nigeria Government’s Expenditure on Economic and Social Service Development: A Canonical Correlation Analysis Approach

Nigeria Government’s Expenditure on Economic and Social Service Development: A Canonical Correlation Analysis Approach

Education Expenditure-Led Growth: Evidence from Nigeria (1980-2018)

The rising government expenditure in Nigeria: Any influence on growth?

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