scholarly journals Government Expenditure and Sustainable Industrial Development in Nigeria

2021 ◽  
Vol 18 ◽  
pp. 31-41
Author(s):  
Alexander Ehimare Omankhanlen ◽  
Peace Onyedikachi Chimezie ◽  
Lawrence Uchenna Okoye
Keyword(s):  
Industrial Development ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Value Added ◽  
Industrial Sector ◽  
Series Data ◽  
Government Revenue ◽  
Proportional Change ◽  
The Impact

The development of the industrial sector remains a contentious issue in Nigeria’s economy.This research examines the impact of Government expenditure on sustainable industrial developmentin Nigeria. The research adopted Johansen co-integration and vector error correction analysis via EViews statistical software (version 10.0) for period between 1981 and 2018, to determine long-runimpact of public finance on industrial growth in Nigeria. It used time series data extracted from CBNstatistical bulletin (2018) and WDI (2018). This research adopts Wagner’s Law named after the Germanpolitical economist Adolph Wagner (1835-1917), which best explains government expenditure andindustrialization. This research study found out that government revenue is statistically insignificantbut has a positive effect on industrial development; Manufacturing Value added as a proxy (MVA), a100% change in GREV will bring about 28% changes in manufacturing output, capital expenditure ishowever statistically significant and negatively impacts industrial output, a change in CEXP will yieldless than a proportional change in MVA by about 52%, recurrent expenditure positively affectsindustrial growth, although its influence is statistically insignificant, a 100% rise in REXP will causeabout 41% increase in manufacturing sector’s growth. Also, a change in capital stock i.e. Gross FixedCapital Formation (GFCF) will lead to a significant but inelastic and less than proportional change inMVA, thereby depicting inverse relationship. Based on the findings the following conclusions weremade: Effective allocations of government revenue as well as the early release and approval of budgetproposals will have a meaningful effect on the economy, increase in sustainable investment levelalongside required equipment coupled with qualified personnel to properly manage these amenities willensure improvement of the industrial sector and finally, working incentives in form of tax incentives,promotion and salary increment should be regularly encouraged in the industrial sector in Nigeria

Impact of Health and Agriculture Financing on Economic Growth in Nigeria

2021 ◽  
Vol 7 (18) ◽  
pp. 37-58
Author(s):  
Rasaki Olufemi KAREEM ◽  
◽  
Olawale LATEEF ◽  
Muideen Adejare ISIAKA ◽  
Kamilu RAHEEM ◽  
...  
Keyword(s):  
Economic Growth ◽  
Federal Government ◽  
Causal Relationship ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Health Sector ◽  
Series Data ◽  
The Impact

The study focused on the impact of health and agriculture financing on economic growth in Nigeria from 1981 to 2019. The study utilized the time series data which was extracted from Central Bank of Nigeria annual statistical bulletin. Unit Root test was performed with the use of Augmented Dickey-Fuller test in order to ascertain the stationarity of all the variables and they were all found to be stationary at order 1 in the two specified models (composite and disaggregated). Error Correction Model (ECM) was used to analyze the data in order to determine the speed of adjustment from the short run to the long run equilibrium state. Casualty test was used to confirm causal relationship among the variables of interests. The study revealed that Federal Government expenditure in Health sector has a significant effect on economic growth in Nigeria. Federal Government expenditure in Agricultural sector equally had a positive effect on economic growth but surprisingly not significant. Considering the disaggregated form, Federal Government capital expenditure in both Health and Agricultural sectors have positive and statistically significant effect on economic growth while Federal Government recurrent expenditure on health has a positive and statistically insignificant effect in economic. It was also revealed that there is causal relationship among the variables. Based on the findings, the study concluded that Federal Government Expenditure in Health Sectors and Agriculture Sectors have effect on economic growth in Nigeria.

scholarly journals The Impact of Macroeconomic Factors on Manufacturing Sector Value Added in Ethiopia: An Application of Bounds Testing Approach to Cointegration

2020 ◽  
Vol 23 (1) ◽  
Author(s):  
Dagim Tadesse Bekele ◽  
Meskerem Teka Haile
Keyword(s):  
Exchange Rate ◽  
Time Series Data ◽  
Manufacturing Sector ◽  
Government Expenditure ◽  
Value Added ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Long Run ◽  
The Impact ◽  
Bound Test

The role of the manufacturing sector for the economic growth and structural change is very low in Ethiopia and performing less compering with that of the other sectors in the economy. So, this research tried to look at how different macroeconomic variables affect the manufacturing sector value added by using annual time series data from 1982 to 2018 estimated by Autoregressive-Distributed Lag (ARDL). The result from the Bound test shows manufacturing sector value added has a long-run relationship with macroeconomic variables in the model. In the long-run, general inflation rate, exchange rate, and trade openness have a significant negative effect on the manufacturing sector value-added. In contrast, general government expenditure has a significant positive effect. Also, the Error Correction model shows an adjustment towards the long-run equilibrium of the manufacturing sector value-added. So, the government has to control the general inflation level, promote demand for domestic manufacturing products and competitiveness of domestic firms, and strengthen the backward link of the sector to decrease its import-input dependency to reduce the effect of exchange rate depressions. Lastly, effective and efficient government expenditure will have to be used to increase the manufacturing sector value-added.

scholarly journals Impact of Government Expenditure on Economic Growth in Nigeria, 1970-2019

2021 ◽  
Vol 12 (No. 1) ◽  
pp. 139-174
Author(s):  
Chandana Aluthge ◽  
Adamu Jibir ◽  
Musa Abdu
Keyword(s):  
Economic Growth ◽  
Structural Breaks ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Unit Root Test ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study investigates the impact of Nigerian government expenditure (disaggregated into capital and recurrent) on economic growth using time series data for the period 1970-2019. The paper employs Autoregressive Distributed Lag (ARDL) model. To ensure robustness of results, the study accounts for structural breaks in the unit root test and the co-integration analysis. The key findings of the study are that capital expenditure has positive and significant impact on economic growth both in the short run and long run while recurrent expenditure does not have significant impact on economic growth both in the short run and long run. The study recommends that government should increase the share of the capital expenditure especially on meaningful projects that have direct bearing on the citizen’s welfare. Government should also improve the spending patterns of recurrent expenditure through careful reallocation of resources toward productive activities that would enhance human development in the country.

scholarly journals Effect of Government Expenditures and Banking Loan Distribution on the Performance of Human Resource Development in Papua Province

2019 ◽  
Vol 3 (2) ◽  
pp. 86
Author(s):  
Hendricus Lembang
Keyword(s):  
Human Resource Development ◽  
Educational Level ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Private Investment ◽  
Bank Loan ◽  
Series Data ◽  
Section Data ◽  
Capital Spending

The research aims to analyze government expenditure on capital spending and bank loan as well as to determine whether it has positive and significant effects on the Human Development Index (HDI) in Papua Province. The method is a quantitative study using a quantitive approach (deductive) to test the hypothesis and explain the causal relationship among panel variables (explanatory research). Data analysis techniques in the form of pooled data. Time series data were taken from 2005 to 2012 and the cross  section data consisting of 19 regioncies and 1 city in Papua Province. The research results about the local government expenditure indicate that 10 the capital expenditure has positive and significant direct effect on an increase in private investment, educational level, employment recruitment and HDI, 2) the bank consumer loan distribution has positive and significant effect on the labor absorption,  3) the private investment has positive but not significant impact on educational level; it has positive and direct significant impact in the labor absorption, 4) the level of education has positive and direct significant impact on the employment recruitment and HDI, 5) labor absorption has positive and direct significant impact in the HDI.

scholarly journals The Role of Technical Innovation and Development of Industrial Sector in Korean International Business

2021 ◽  
Vol 22 (1) ◽  
pp. 55-73
Author(s):  
Ali Mohammed Khalel Al-Shawaf ◽  
Tahira Yasmin
Keyword(s):  
Time Series Data ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Industrial Sector ◽  
Least Square ◽  
Policy Implications ◽  
Series Data ◽  
Significance Level

With the pace of development and competitiveness, innovation plays an important role to capture the market share. Various countries have effective strategies to enhance Research and Development (R&D) and exchange value added products in international market. So, based on this the aim of this research is to examine the role of R&D, industrial design and charges for intellectual property in innovative exports in South Korean economy. Time series data for the period 1998 to 2017, Ordinary Least Square (OLS) and Generalized Method of Moments (GMM) models are used to determine the dynamic interrelationship among the study variables. In summary, the overall results show that there is co-integration rank of in both trace test and value test at 1% significance level. Moreover, OLS and GMM findings depict that there is significant and positive coefficient for ID & RD which represent that they have positive impact on HT. Whereas, the IP displays a negative and significant relationship with high technology exports accordingly. Lastly, the diagnostic tests show that model is stable for the study time period and result is reliable. The current study also suggests some policy implications which can enhance innovative export products of South Korea while enhancing R&D.

Human Capital Impact on Economic Growth in Nigeria

2021 ◽  
Vol 7 (18) ◽  
pp. 15-22
Author(s):  
Chuwuemeka Ogugua AGBO ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Private Investment ◽  
Series Data ◽  
Tertiary Institutions ◽  
Explanatory Variables ◽  
The Government ◽  
The Impact

This study aims to examine the impact of human capital on economic growth in Nigeria. Despite all effort to improve education condition in Nigeria, there hasn’t been much encouraging improvement. This has caused a large number of the population to move abroad for studies. Most conducive tertiary institutions are owned by private individuals, the government owned universities have been overlooked and recklessly abandoned. In this study OLS multiple regression was adopted to analyze the time series data for the period of 1985-2018 to test if Average Year of Schooling (AVYS), Private Investment in Telecommunication (PIT), Capital Expenditure on Education (CEE), and Recurrent Expenditure on Education (REE) have an impact on growth in Nigeria or not. The data was derived from CBN statistical Bulletin (2018). Result showed that all the four explanatory variables have significant impact on Economic growth. However, it is therefore important for government to increase education budget annually.

Impact of Fiscal Policy on Agricultural Output in Nigeria

2019 ◽  
Vol 9 (7) ◽  
pp. 1428 ◽  
Author(s):  
Adedoyin Isola LAWAL ◽  
Ernest Onyebuchi FIDELIS ◽  
Abiola Ayoopo BABAJIDE ◽  
Barnabas O. OBASAJU ◽  
Oluwatoyese OYETADE ◽  
...  
Keyword(s):  
Fiscal Policy ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Negative Impact ◽  
Capital Expenditure ◽  
Research Work ◽  
Estimation Method ◽  
Series Data ◽  
Agricultural Output ◽  
The Impact

This study examines the impact of fiscal policy on agricultural output in Nigeria using the most recent official data. The metrics for fiscal policy is government capital expenditure and custom duties on fertilizer. The study used annual time series data obtained from CBN annual statistical bulletin, NCS, and FIRS which was found to be stationary at the order of I(1) and I(0). The order of unit root test led to the use of ARDL estimation method employed in the empirical analysis of this research work. The study found evidence of both short and long run relationship between the variables (VAO, GEX, IDMF, and ACGSF) using both Johansen co-integration and ARDL Bounds test. Although government expenditure (GEX) to agricultural sector was found to be statistically insignificant which recommend that government should increase agriculture capital expenditure to ensure that its contribution is significant. Consequently, custom duties on fertilizer (IDMF) was found to be negatively signed and significant indicating a negative impact on agricultural output. This demands that the policy makers should be prudent in the use of fiscal policy instrument in achieving its desired objective.

The impacts of China’s FDI on employment in Thailand’s industrial sector

2016 ◽  
Vol 9 (1) ◽  
pp. 60-84 ◽  
Author(s):  
Mathavee Keorite ◽  
Mohamed Moubarak
Keyword(s):  
Time Series Data ◽  
Driving Forces ◽  
Dominant Role ◽  
Government Expenditure ◽  
Impulse Response Function ◽  
Industrial Sector ◽  
Series Data ◽  
Content Type ◽  
Reduction Potentials ◽  
Industrial Sectors

Purpose – This study aims to analyze the effect of inward foreign direct investment (FDI) on new job creation. This study pays attention to factors interrelated to China’s FDI by using the case of Thailand. Design/methodology/approach – Using time series data from 2001 to 2014, this paper explores the driving forces and reduction potentials of employment in Thailand’s industrial sector with consideration for dynamic changes within the vector autoregression model. Findings – The results show that government expenditure plays a dominant role in increasing employment in Thailand’s industrial sector and exports plays a dominant role in decreasing employment in Thailand’s industrial sector. All variables are co-integrated and the analysis of the impulse–response function also turns out to be synchronous. Furthermore, in the short term, exports are more critical than China’s FDI in industrial sectors in reduction potentials of employment in Thailand’s industrial. Practical/implications – Policies should be devised to increase skilled labour and improve the equality of infrastructure in the country to attract more FDI into the economy and for quick adjustment purposes in case of shock to the system. Originality/value – The paper uncovers some important factors influencing employment in Thailand’s industrial sector under study and provides a guide-map for policymakers.

scholarly journals Does government spending reduce poverty in Nigeria? Evidence from Auto-Regressive Distributed Lag Specification.

2020 ◽  
Vol 7 (2) ◽  
pp. 86
Author(s):  
Olufemi Samuel Adegboyo
Keyword(s):  
Government Spending ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Transportation Cost ◽  
Series Data ◽  
Distributed Lag ◽  
Auto Regressive ◽  
The Government ◽  
Transfer Capital ◽  
The Impact

This paper analyses the impact of government spending on poverty reducing in Nigeria for the period 1981 to 2017 making use of annual time series data. The study employs the Auto-Regressive Distributed Lag (ARDL) approach. The result of the study revealed that economic service recurrent expenditure (ESRX), social and community recurrent expenditure (SCSRX), Transfer recurrent expenditure (TRX) reduces poverty while transfer capital expenditure (TCX) and administrative recurrent expenditure (ADRX) escalate poverty. Consequently, the study recommends that Government should embark on provision of food subsidies, subsidies farm input for farmers, subsidies transportation cost. Furthermore, government should endeavor to pay pensioners all their entitlements including gratuities as at when due without any delay, government should also be giving stipend to the unemployed and disabled, more poverty alleviating programs should be organize Also, the huge cost of maintaining the government should be reduced by reducing the numbers of political appointees to a reasonable size.

scholarly journals Potential Tax Reforms and Kuwait Economic Growth

2019 ◽  
pp. 42-48
Author(s):  
K. Lawler ◽  
F. Ali Al-Sayegh
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Value Added ◽  
Least Square ◽  
Series Data ◽  
Tax Reforms ◽  
Tax Revenues ◽  
Oil Revenue ◽  
The Impact

The objective of this study is to identify whether tax reforms are viable in Kuwait in order to create more government income from sources other than oil. The study examines the relationship between the changes in tax revenues, changes in oil revenue and changes in GDP in Kuwait using time series data from 1998 to 2015. The Augmented Dickey-Fuller (ADF) is used to check for the existence of a unit root. The cointegration test is applied to test for long term relationships between variables using the General Least Square (GLS) method of estimation. The results of the tests find that the impact of changes in tax revenues on changes in the GDP of Kuwait is insignificant. Therefore, Kuwait’s government could rationally implement tax reforms to have incremental sources of income other than oil revenue. Moreover, it is argued that the government might consider implementing broad based consumption taxes and value added taxes into the tax structure Kuwait, and to invest the revenues from those taxes in productive policies, to induce long term economic growth.

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