scholarly journals Implications of Non –productive and Productive Government Expenditure on Output and Employment: Evidence From Nigeria

2021 ◽  
Vol 12 (2) ◽  
pp. 51
Author(s):  
Abiola John Asaleye ◽  
Rotdelmwa Filibus Maimako ◽  
Henry Inegbedion ◽  
Adedoyin Isola Lawal ◽  
Charity O. Aremu
Keyword(s):  
Government Expenditure ◽  
Cost Benefit ◽  
Vector Error Correction ◽  
Long Run ◽  
Theoretical Predictions ◽  
Short Run ◽  
Nigerian Government ◽  
The Cost ◽  
The Impact ◽  
Productive Government Expenditure

Nigerian government expenditure has been on an increasing trend over the years, and its contribution to sustainable economic development; promoting long-term output and employment has generated controversial issues in the literature. Against this background, this study analyses the impact of both productive and non-productive government expenditure on output and employment in Nigeria using the Vector Error Correction Model, The long-run equations for output and employment are established. The joint short and long-run causality was also investigated. The study shows a contrary result to theoretical predictions; Nigeria's long-run growth is not promoting by productive government expenditure. Furthermore, there is joint short and long-run causality between employment and government expenditure channels. Evidence from the output equation indicates no joint long and short-run causality. The implication of this result shows that government expenditure either productive or non-productive, has not improved the economy, although there is an increase in employment generation through the non-productive channel, which has not promoted broad-based growth. For the Nigerian government to improve the situation, the study recommends a critical assessment of public expenditure through the cost-benefit approach.

scholarly journals The impact of selected macro variables on child labor in Indonesia

2017 ◽  
Vol 5 (3) ◽  
pp. 21
Author(s):  
Shafinah Rahim ◽  
Fatin Nur Nadia Bakar
Keyword(s):  
Child Labor ◽  
Family Income ◽  
Government Expenditure ◽  
Consumption Pattern ◽  
Impulse Response Functions ◽  
Vector Error Correction ◽  
Long Run ◽  
Short Run ◽  
Macro Variables ◽  
The Impact

This study investigates the impact of government expenditure, household expenditure and adult unemployment on child labour in Indonesia between 1985 and 2014. The data from the World Bank Indicators tested using Johansen &Juselius Cointegration (J&J), Vector Error Correction Model (VECM), Granger Causality, Generalized Variance Decomposition (GVDCs) and Generalized Impulse Response Functions (GIRFs) show thatthere are long run and short run relationships between the variables. Hence,the need to improve on policiesrelating to encouraging children to attend school without affecting their family income becomes critical. In addition household consumption pattern and spending decisions may require adjustment with the support of the authorities so as to assist the common man in prioritising their basic development needs, especially education.

scholarly journals Do Erratic Rainfalls Hamper Grain Production? Analysis of Supply Response of Rice to Price and Non-Price Factors

Agronomy ◽  
2021 ◽  
Vol 11 (8) ◽  
pp. 1463
Author(s):  
Ghulam Mustafa ◽  
Azhar Abbas ◽  
Bader Alhafi Alotaibi ◽  
Fahd O. Aldosri
Keyword(s):  
Unit Root Test ◽  
Rice Production ◽  
Vector Error Correction ◽  
Supply Response ◽  
Target Time ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
The Impact

Increasing rice production has become one of the ultimate goals for South Asian countries. The yield and area under rice production are also facing threats due to the consequences of climate change such as erratic rainfall and seasonal variation. Thus, the main aim of this work was to find out the supply response of rice in Malaysia in relation to both price and non-price factors. To achieve this target, time series analysis was conducted on data from 1970 to 2014 using cointegration, unit root test, and the vector error correction model. The results showed that the planted area and rainfall have a significant effect on rice production; however, the magnitude of the impact of rainfall is less conspicuous for off-season (season 2) rice as compared to main-season rice (season 1). The speed of adjustment from short-run to long-run for season-1 rice production is almost two-and-a-half years (five production seasons), while for season-2 production, it is only about one-and-a-half year (three production seasons). Consequently, the study findings imply the supply of water to be enhanced through better water infrastructure for both seasons. Moreover, the area under season 2 is continuously declining to the point where the government has to make sure that farmers are able to cultivate the same area for rice production by providing uninterrupted supply of critical inputs, particularly water, seed and fertilizers.

scholarly journals Foreign capital flows, exports and growth in Zambia

2015 ◽  
Vol 5 (4) ◽  
pp. 26-37
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Capital Flows ◽  
Foreign Capital ◽  
Growth Enhancement ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Foreign Capital Flows ◽  
Causality Relationship ◽  
The Impact

This study investigates the causality between FDI net inflows, exports and GDP using Vector Error Correction Model (VECM) approach. The words foreign capital flows and FDI are used interchangeably in this study. The findings from the VECM estimation technique is six fold: (1) the study revealed a long run causality relationship running from exports and GDP towards FDI, (2) the study showed a non–significant long run causality relationship running from FDI and exports towards GDP and (3) the existence of a weak long run causality relationship running from FDI and GDP towards exports in Zambia. The study also found out that no short run causality relationship that runs from FDI and exports towards GDP, short run causality running from FDI and GDP towards exports does not exist and there is no short run causality relationship running from exports and GDP towards FDI. Contrary to the theory which says that FDI brings along with it a whole lot of advantages (FDI technological diffusion and spill over effects), the current study found that the impact of FDI in Zambia is not significant in the long run. This is possibly because certain host country locational characteristics that ensures that Zambia can benefit from FDI inflows are not in place or they might be in place but still not yet reached a certain minimum threshold levels. This might be an interesting area for further research. On the backdrop of the findings of this study, the author recommends that the Zambian authorities should formulate and implement export promotion strategies and economic growth enhancement initiatives in order to be able to attract more FDI.

scholarly journals Impact of Exchange Rate Management on the Nigerian Economic Growth: Empirical Validation

2019 ◽  
Vol 1 (2) ◽  
pp. 28-35
Author(s):  
Friday Osaru Ovenseri Ogbomo ◽  
Precious Imuwahen Ajoonu
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Inflation Rate ◽  
Government Expenditure ◽  
Least Square ◽  
Ordinary Least Square ◽  
Exchange Rate Management ◽  
Long Run ◽  
Short Run ◽  
The Impact

This paper examined the impact of Exchange Rate Management on economic growth in Nigeria between 1980 and 2015. The study was set to gauge how the management of exchange rate in Nigeria has impacted the economy. The study employed the Ordinary Least Square (OLS) method in its analysis. Co-integration and Error Correction Techniques were used to establish the Short-run and Long-run relationships between economic growth and other relevant economic indicators. The result revealed that exchange rate management proxy by various exchange rates regimes in Nigeria was not germane to economic growth. Rather, government expenditure, inflation rate, money supply and foreign direct investment significantly impact on economic growth in Nigeria. It is against this backdrop that the Nigerian economy must diversify her export base to create room for more inflow of foreign exchange.  

scholarly journals The Combined Effects of Public and Private Investments on Economic Growth in the CEMAC Zone

2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Noula Armand Gilbert ◽  
Chouafi Nguekam Orfé ◽  
Kamajou François
Keyword(s):  
Economic Growth ◽  
Sustainable Growth ◽  
Public And Private ◽  
Vector Error Correction ◽  
Panel Data Estimation ◽  
Public Investments ◽  
Long Run ◽  
Private Investments ◽  
Short Run ◽  
The Impact

This study evaluates the simultaneous impact of public and private investments on economic growth in the CEMAC zone between 1984 and 2017.To attain this aim, we use the Vector Error Correction Model (VECM) to test the direction of causality between the three variables above at the level of each country. We find that the direction of causality is not the same in all the countries both in the short as in long-run. We then develop an ideal model going from the Cobb Douglas production function which we quantitatively validate using panel data estimation through the method of Pool Mean Group which takes into account individual specificities. It arises that contrary to economic theory, private sector investments have positive and significant effects in short-run. However, the impact of public investments is negative and significant. In the long-run, the effects are reversed and call on the authorities of the CEMAC zone to reinforce the political risk to strengthen the public-private partnership in the process of sustainable growth.

Does government expenditure reduce unemployment in Egypt?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hanan AbdelKhalik Abouelfarag ◽  
Rasha Qutb
Keyword(s):  
Unemployment Rate ◽  
Government Expenditure ◽  
Vital Role ◽  
Content Type ◽  
Vector Error Correction ◽  
Public Investments ◽  
Long Run ◽  
Johansen Cointegration Test ◽  
The Government ◽  
The Impact

PurposeThis research seeks to empirically examine the impact of government expenditure on the unemployment rate in Egypt during the period of 1980–2017. In addition, it examines whether the distinction between discretionary and nondiscretionary items of government expenditure have a different effect on unemployment.Design/methodology/approachThe study employs the Johansen cointegration test to ensure the long-run equilibrium relationship among the variables, then the vector error correction model (VECM) to explore the dynamic short and long-run effects.FindingsThe empirical results of this research reveal that increasing government expenditure causes an increase in the unemployment rate in the long-run. Both discretionary expenditures and nondiscretionary expenditures increase the growth of unemployment by approximately the same coefficient. The worsening impact of discretionary expenditures on unemployment is highly attributed to the compensation of employees and the government subsidies. Investment expenditure has an insignificant effect because of its minor percentage in government expenses.Practical implicationsRedirecting the unnecessary expenditures toward labor-intensive public investments is recommended, in addition to reducing domestic and foreign debts. The government has to work hard to increase the economic growth rate, as it has a vital role in reducing unemployment.Originality/valueThis study is one of the first attempts to analyze the effect of government expenditure on the unemployment rate in Egypt. Moreover, this research distinguishes between the effects related to discretionary and nondiscretionary items of government expenditure.

Globalisation, Economic Growth and Income Inequality in Nigeria

2020 ◽  
Vol 14 (2) ◽  
pp. 202-212
Author(s):  
NWOSA Philip Ifeakachukwu
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Secondary Data ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact ◽  
Financial Globalisation

This article examines the link between globalisation, economic growth and income inequality in Nigeria using annual secondary data over the period 1981–2018. Specifically, it attempts to examine the following questions: (a) What is the direction of causation among globalisation, economic growth and inequality? (b) What is the impact of globalisation and economic growth on inequality? (iii) Do trade globalisation and financial globalisation have differential impacts on inequality in Nigeria? The article used both vector error correction modelling (VECM) and auto-regressive distributed lag (ARDL) techniques. The VECM results show a unidirectional causality from inequality and globalisation to economic growth in the long run, whereas a unidirectional causation was observed from inequality to economic growth in the short run. The ARDL estimate shows that globalisation and economic growth are significant determinants of inequality in Nigeria. Furthermore, it is observed that trade and financial globalisation influenced income inequality differently. In the light of these findings, the article recommends that the foreign direct investment should be channelled towards empowering the poor, and the dividends of economic growth should be evenly distributed to reduce the income inequality gap.

scholarly journals The causal and cointegration relationship between government revenue and government expenditure

2017 ◽  
Vol 6 (3) ◽  
pp. 23-32
Author(s):  
Kebitsamang Anne Sere ◽  
Ireen Choga
Keyword(s):  
South Africa ◽  
Time Series Data ◽  
Government Expenditure ◽  
Series Data ◽  
Government Revenue ◽  
Causality Test ◽  
Vector Error Correction ◽  
Long Run ◽  
Reserve Bank ◽  
Short Run

This study determines the causal relationship that exists between government revenue and government expenditure in South Africa. The study employed annual time series data from the year 1980 to 2015 taken from the South African Reserve Bank. The Johansen multivariate method was employed to test for co-integration and for causality the Vector Error Correction/Granger causality test was employed. The empirical results suggest that there is a long-run relation-ship between government revenue and government expenditure. The causality result suggests that there is no causality between government revenue and government expenditure in South Africa. Thus, policy makers in the short run should determine government revenue and government expenditure of South Africa independently when reducing the budget deficit.

scholarly journals Energy Demand and Cooking Energy Cost in an Oil-Rich Economy: A New Evidence from Nigeria

2021 ◽  
Vol 31 (1) ◽  
pp. 1-21
Author(s):  
Anthony Orji ◽  
Stephen Obinozie Ogwu ◽  
Peter Nwachukwu Mba ◽  
Onyinye Imelda Anthony-Orji
Keyword(s):  
Energy Cost ◽  
Energy Demand ◽  
Negative Impact ◽  
Liquefied Petroleum Gas ◽  
Long Run ◽  
Social And Economic Development ◽  
Short Run ◽  
Cooking Energy ◽  
The Cost ◽  
The Impact

AbstractAccording to several recent studies, energy is seen as a commodity, due to the fact that energy sector markets are more like commodity markets. Essentially, it serves as an enabler of social and economic development and so cannot be neglected. This study, therefore, estimated the impact of cooking energy cost on energy demand in Nigeria using the ARDL model and quarterly data spanning from 1990-2018. The result from the study showed that in the long-run both liquefied petroleum gas (LPG) price and kerosene price has a negative impact on energy demand. In the short-run, the result remained the same for kerosene while it reversed for LPG. The study, therefore, recommended that government should enact policies that will moderate or minimize the cost of cooking energy and enhance the removal of all forms of barriers in making cooking energy affordable to users in the country.

scholarly journals Going for the Gold: The Economics of the Olympics

2016 ◽  
Vol 30 (2) ◽  
pp. 201-218 ◽  
Author(s):  
Robert A. Baade ◽  
Victor A. Matheson
Keyword(s):  
Investment Decision ◽  
Cost Benefit ◽  
Good Effect ◽  
Costs And Benefits ◽  
Long Run ◽  
Short Run ◽  
Net Benefits ◽  
Opening And Closing ◽  
The Cost ◽  
Bidding Process

In this paper, we explore the costs and benefits of hosting the Olympic Games. On the cost side, there are three major categories: general infrastructure such as transportation and housing to accommodate athletes and fans; specific sports infrastructure required for competition venues; and operational costs, including general administration as well as the opening and closing ceremony and security. Three major categories of benefits also exist: the short-run benefits of tourist spending during the Games; the long-run benefits or the “Olympic legacy” which might include improvements in infrastructure and increased trade, foreign investment, or tourism after the Games; and intangible benefits such as the “feel-good effect” or civic pride. Each of these costs and benefits will be addressed in turn, but the overwhelming conclusion is that in most cases the Olympics are a money-losing proposition for host cities; they result in positive net benefits only under very specific and unusual circumstances. Furthermore, the cost–benefit proposition is worse for cities in developing countries than for those in the industrialized world. In closing, we discuss why what looks like an increasingly poor investment decision on the part of cities still receives significant bidding interest and whether changes in the bidding process of the International Olympic Committee (IOC) will improve outcomes for potential hosts.

Sign in / Sign up

Export Citation Format

Share Document