scholarly journals Public Expenditure and Inflation in Nigeria

2021 ◽  
Vol 04 (07) ◽  
Author(s):  
Lubo Ebisine ◽  
Keyword(s):  
Public Expenditure ◽  
Government Expenditure ◽  
Percent Level ◽  
Economic Activities ◽  
Government Investment ◽  
Secondary Sources ◽  
Insignificant Effect ◽  
Long Run ◽  
The Empirical Analysis ◽  
Level Government

This paper empirically examined the effect of public expenditure on inflation in Nigeria in Nigeria from 1981 to 2018. The study adopts descriptive statistics, Co-integration and Error Correction Mechanism techniques for the analysis. The data for the empirical analysis were sourced from secondary sources like CBN Statistical Bulletin. The results of analysis indicated that a long run relationship exists among the variables. Furthermore, the paper revealed that government expenditure on transport and communication (XTCM) has a positive but insignificant relationship with inflation (CPI) at 5 percent level; government expenditure on defense (XDFS) is positive and an insignificant effect on inflation (CPI) in Nigeria; government expenditure on agriculture (XAGR) is negative and an insignificant effect on inflation (CPI) in Nigeria; government expenditure on education (XEDU) is positive and an insignificant effect on inflation (CPI) in Nigeria and government expenditure on health (XHLT) is negative and an insignificant effect on inflation (CPI) in Nigeria. Based on the above findings, the paper recommends as follows: Government should be effective in channeling public funds to productive economic activities, which will enhance price stability in Nigeria. Also, government consumption spending should be well coordinated by all arms of government to prevent “Crowd out” effect on government investment.

scholarly journals Effect of Public Expenditure in Construction and Transportation sectors on Employment in Nigeria

2018 ◽  
pp. 130-136
Author(s):  
EWUBARE,Dennis Brown ◽  
MAEBA, Sampson Lucky
Keyword(s):  
Public Expenditure ◽  
Time Series Data ◽  
Government Expenditure ◽  
Percent Level ◽  
Series Data ◽  
Employment Rate ◽  
Social Infrastructure ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Short Run

This paper examined public expenditure and employment in Nigeria from 1980 to 2017. The study was induced by the insufficient federal government budgetary allocations to some critical sectors such as transport and construction sectors that tend to prompt the decay in the construction sector. To this end, the objectives of the study are to evaluate the effect of public expenditure in construction and transport sectors on employment rate in Nigeria. In doing this time series data were collected from CBN bulletin from 1980-2017 on variables such as employment rate, public expenditure on construction and transportation sectors. The cointegraton and ECM methods were used for the analysis. The long run dynamic results showed that there exists a long-run relationship or equilibrium among the variables. The coefficient of ECM is negatively signed and statistically significant at 5 percent level. Meaning that the short run error has been adjusted to long run equilibrium relationship. The result of analysis showed that in the long run, government expenditure will address the pitfalls in the country employment. Therefore, the paper recommended that effort should be made to ensure viability of social infrastructure through increase in annual capital budget spending in order to increase the level of employment and hence economic growth in Nigeria.

scholarly journals Do FDI and Public Investment Crowd in/out Domestic Private Investment in the SADC Region

2021 ◽  
Vol 19 (1) ◽  
pp. 3-25
Author(s):  
Eslon Ngeendepi ◽  
Andrew Phiri
Keyword(s):  
Capital Expenditure ◽  
Public Investment ◽  
Trade Openness ◽  
Government Expenditure ◽  
Private Investment ◽  
Policy Implications ◽  
Domestic Investment ◽  
Government Investment ◽  
Long Run ◽  
Short Run

Our study examines the crowding-in/out effect of foreign direct investment and government expenditure on private domestic investment for 15 members of the Southern African Development Community (SADC) for the period 1991–2019. The study employed the panel Pool Mean Group (PMG)/ARDL technique in estimating the short-run and long-run cointegration relationships between FDI, government capital expenditure and domestic private investment and adds three more variables for control purposes (interest rate, GDP growth rate and trade openness). For the full sample, FDI crowds-in domestic investment whilst government crowds-out domestic investment. However, in performing a sensitivity analysis, in which the sample was segregated into low and high income economies, both FDI and government investment crowd-in domestic investment whilst government expenditure crowds-out domestic investment in lower income SADC countries with no effect of FDI on domestic investment. Policy implications are discussed.

scholarly journals Impact of Government Expenditure in Economic Growth of Nepal: ARDL Approach

2019 ◽  
Vol 3 (1) ◽  
pp. 33-40
Author(s):  
Keshar Bahadur Kunwar
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Unit Root ◽  
Public Expenditure ◽  
Correction Term ◽  
Percent Level ◽  
Series Data ◽  
Error Correction Term ◽  
Long Run ◽  
Lm Test

Public expenditure refers to the expenditure made by public authority, i.e., central government and other local bodies to carter the demand of the people. It is for protecting the citizens and for promoting their economic and social welfare. Public expenditure is one of the instruments through which government influence economic events. The specific objective of this paper is to analyze the long run and short run relationship between public expenditure and economic growth in Nepal and to examine the Causal relationship between the public expenditure and economic growth in Nepal. The study employed quantitative techniques and econometrics methods to analyze the data. This study used time series data. Data analysis begins with the testing of the unit root of the series to confirm whether the data are stationary or not. Augmented Dicky Fuller unit root test, co-integration test is employed to check the relationship of the variables under study. One period lagged LNGE has significant and positive impact on RGDP. If 1 percent increase in GE leads to increase by 34.99 percent in RGDP at 5 percent level of significance. The coefficient of error correction term (-0.782018) is significant at one percent level. Highly significant negative sign of the error correction term strengthens the presence of long-run relationship among the variables. However, the speed of adjustment from previous year’s disequilibrium in RGDP added to current year’s equilibrium is only 78.20 percent. The P-value of Breusch-Godfrey serial Correlation LM Test, Heteroscedasticity test: Breusch-Pagan-Godfrey and normality test is greater than 5 percent which is desirable. So, this model is free from auto correlation and heteroscedasticity. The residual is normally distributed.

scholarly journals Revenue-Expenditure Nexus for India

2017 ◽  
Vol 3 (1) ◽  
Author(s):  
Sanhita Sucharita
Keyword(s):  
Temporal Relationship ◽  
Public Expenditure ◽  
Government Revenue ◽  
Total Expenditure ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
The Empirical Analysis ◽  
Over Time ◽  
Made In

This paper attempts to find out the inter-temporal relationship between government expenditures and revenues in India. It tries to find out if the variations in revenues cause variations in expenditures or the variation in expenditure cause variation in revenue. It also analyses the trend and composition of rising public expenditure in India. This paper has used vector error correction mechanism to find out the causality between the governments total expenditure and revenue receipt. The empirical analysis suggests long run causality from Government revenue receipts to Government total expenditure. It supports the tax-spend hypothesis that means over time, expenditure decisions are not made in isolation of revenue receipts.

scholarly journals Public Expenditure and Economic Growth: A Test of Wagner’s and Keynes Hypotheses in Nigeria and Angola Economies

2021 ◽  
Vol 1 (3) ◽  
pp. 21-26
Author(s):  
Saliu Mojeed Olanrewaju ◽  
Akeju Kemi Funlayo
Keyword(s):  
Economic Growth ◽  
Health Expenditure ◽  
Capital Investment ◽  
Public Expenditure ◽  
Government Expenditure ◽  
Education Expenditure ◽  
Investment Expenditure ◽  
Long Run ◽  
Johansen Cointegration ◽  
Wagner’S Theory

This study verifies the validation of Wagner’s theory and Keynes's hypothesis between three main government expenditure components (Health expenditure, education expenditure, and capital investment expenditure) and economic growth in Nigeria and Angola. The study employs Johansen cointegration and pairwise granger causality as the estimation techniques. Findings revealed no evidence of long-run relationships with government expenditure components of health, education, and capital investment and economic growth. The study equally reveals the validation of Wagner’s theory between growth and expenditure on health in both Nigeria and Angola. Evidence that confirms both Wagner’s theory and Keynes's hypothesis between growth and expenditure on education in Angola and validation of only Keynes hypothesis in Nigeria was found. Also, the study confirms the validation of Keynes's hypothesis between government expenditure on capital investment in both Nigeria and Angola

scholarly journals Sustainable tourism and economic growth nexus in Kenya: policy implications for post-Covid-19

2020 ◽  
Vol 1 (2) ◽  
pp. 123-138
Author(s):  
Kipkosgei Bitok ◽  
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Sustainable Tourism ◽  
Policy Implications ◽  
Primary Data ◽  
Series Data ◽  
Economic Activities ◽  
Secondary Sources ◽  
Long Run ◽  
Socio Economic Impact

Purpose: The COVID-19 global pandemic has caused an unprecedented socio-economic impact. It has also raised our awareness of the role sustainability needs to play in our economic activities. This study investigated how sustainable tourism has contributed to economic growth in Kenya. Research Methodology: Eviews 10 software was used to analyze the time-series data. Drawing on data from 1995 to 2020, Johansen co-integration, Granger causality, and regression approaches were used. Results: The study found out that tourism employment and GDP are positively connected to economic growth in Kenya. The causality was unidirectional from economic growth to tourism contribution to GDP and employment, with a long-run linkage of the study determinants. Limitations: Since this research used the secondary sources of data, similar studies in the future may concentrate on the primary data sources to investigate the relationship between tourism employment and economic advancement. Contribution: At the new normal in the post-Covid-19 period, the study suggests that legislators and tourism policymakers should focus on the policies aimed at promoting sustainable tourism. Sustainable tourism should be managed following the three pillars of sustainability. Keywords: Development, Domestic, Moderate, Regional, Scenario

scholarly journals Effects of Public Expenditure on Gross Domestic Product in Zambia from 1980-2017: An ARDL Methodology Approach

2019 ◽  
Vol 11 (2(J)) ◽  
pp. 103-111
Author(s):  
Mubanga Mpundu ◽  
Jane Mwafulirwa ◽  
Mutinta Chaampita ◽  
Notulu Salwindi
Keyword(s):  
Gross Domestic Product ◽  
Current Account ◽  
Public Expenditure ◽  
Government Expenditure ◽  
Private Investment ◽  
Domestic Product ◽  
Series Data ◽  
Current Account Balance ◽  
Long Run ◽  
Short Run

The paper explored the fundamental changes in public expenditure and the resulting effect on the gross domestic product using an ARDL approach for time series data over the period 1980-2017. The control variables included foreign direct investment and current account balance. The objective was to determine changes which had occurred with regard to the performance of GDP since 1980. A quantitative method approach was used to ascertain the relationship between the variables and analysed using the E-views 9 software. Cointegration results showed a long run relationship between GDP and government expenditure. In this regard, changes in government expenditure have a strong converse effect on GDP. Government expenditure, which has increased significantly in the past decade, is seen to have had negative effects both in the short run and long run. Contrary to theory, increased government expenditure may not be ideal for growing the Zambian economy. This could be due to the allocation of this public expenditure, i.e. the 2018 Budget had 24% of the expenditure directed to economic activities. Thus it is recommended that government practice increased fiscal discipline or reallocated resources as their expansionary fiscal policies are not yielding the intended results. Additionally, policies to promote private investment may be more beneficial for the Zambian economy. On the other hand, increased investment is also recommended with government encouraging more investment promoting policies as FDI is observed to have a positive impact in the short run though insignificant in the long run. These should ensure more investors are encouraged to stay longer and the impacts/externalities of their investments be accrued to the nationals to ensure long run benefits. The Zambian government should also ensure that the country diversifies its export base and enhances its external debt management to ensure positive and consistent impact of Current Account Balance in the long run.

scholarly journals COVID-19 in Ghana: An Overview of Government Contributions in Fighting this Pandemic

2020 ◽  
Vol 1 (6) ◽  
Author(s):  
Evans Yeboah ◽  
Rose Gyamea Kyeremeh
Keyword(s):  
Economic Impact ◽  
Quantitative Method ◽  
Developing Economies ◽  
Government Expenditure ◽  
Economic Activities ◽  
Secondary Sources ◽  
The Government ◽  
Negative Impacts ◽  
Vulnerable Persons

Coronavirus outbreak has brought significant negative impacts on developed and developing economies with Ghana, not an exemption. This pandemic has slow down economic activities across the globe through unplanned budget expenditures by various government. There is an increasing pressure on many governments to directed tremendous capital resource to stop the outbreak. The perspective of this paper is to provide, update, and inform concerning Covid-19 situation in Ghana, and also look at government expenditure on this pandemic and economic impact. This study employed the quantitative method which promotes the analysis of secondary sources of data. The study captured some of economic and livelihood programme implemented by the government of Ghana to support the most vulnerable persons. With Ghana currently having low active Covid-19 confirmed cases proves that the government has done well to control the spread of the virus.

scholarly journals The Impact of Government Expenditures on Economic Growth in Jordan (1980-2013)

2015 ◽  
Vol 9 (1) ◽  
pp. 99 ◽  
Author(s):  
Torki M. Al-Fawwaz
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Government Expenditure ◽  
Multiple Linear Regression Model ◽  
Government Expenditures ◽  
Economic Activities ◽  
Economic Sectors ◽  
Keynesian Model ◽  
The Impact ◽  
The Empirical Analysis

<p class="FreeForm">The purpose of this study is to measure the impact of government expenditures on economic growth in Jordan during the period between 1980-2013. To achieve the goal of this study, the multiple linear regression model, linking the study variables was used. Then, the model was analyzed using the OLS model. The results indicate that there is a positive impact for both total government expenditure and current government expenditure on economic growth. This result supports the Keynesian model. Based on the findings of the empirical analysis, the study recommends that capital government expenditure should be directed mainly to current productive economic activities in order to stimulate activities in the economic sectors.</p>

scholarly journals Investment Sustained by Consumption: A Linear and Nonlinear Time Series Analysis

2019 ◽  
Vol 11 (16) ◽  
pp. 4381 ◽  
Author(s):  
Jose Perez-Montiel ◽  
Carles Manera Erbina
Keyword(s):  
Causal Relationship ◽  
Private Consumption ◽  
Public Expenditure ◽  
Empirical Studies ◽  
Aggregate Demand ◽  
Government Expenditure ◽  
Investment Decisions ◽  
The United States ◽  
The European Union ◽  
Long Run

This paper studies the dynamic relationship between consumption and investment in the United States between 1947 and 2018. Our findings support the postulates of Keynesian economics—while they are contrary to the theoretic background on which the numerous empirical studies on the saving-investment nexus are based. We find a long-run nexus between consumption and investment, and positive linear Granger-causality running unidirectionally from consumption to investment. Therefore, investment is sustained by consumption. Further, we find that the variables have nonlinear structures and, thus, we apply nonlinear causality tests. We provide evidence of nonlinear causality running unidirectionally from consumption to investment. Nevertheless, after controlling for Government Expenditure, this nonlinear causal relationship disappears, indicating that Government Expenditure drives the nonlinear causal relationship between private consumption and investment. We argue that this finding is consistent with the notion that investment decisions are guided by permanent aggregate demand, because public expenditure allows private consumption to have a sufficiently permanent trajectory to be considered as a guide for investment decisions. Our results do not support the austerity and deflation measures implemented in the last years (especially in the European Union). On the other hand, our findings call for the incentive of final public expenditure, since it favours the long-run link between the private decisions to consume and invest.

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