Determinants of the Size of Public Expenditure in Nigeria

Ukwueze, Ezebuilo R.

doi:10.1177/2158244015621346

Cited by 27 publications

(45 citation statements)

References 32 publications

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“…These findings are similar to those of Ukwueze (2015) and Okafor and Eiya (2011). These findings further support the positive theory of public expenditure for Peacock and Wiseman (1961) which states that government expenditure and taxes are positively related due to the displacement effect.…”

Section: Error Correction Modelsupporting

confidence: 87%

“…Total debts significantly influenced the size of government expenditure only in the short run. Both studies by Ukwueze (2015) and Okafor and Eiya (2011) are in line with the Ricardian equivalence theory implying that both taxes and borrowings constitute essential equivalent forms of financing public expenditures in Nigeria. Kanano (2006) on the other hand also examined the determinants of public expenditure growth in Kenya using the time series data analysis technique for the period 1980 to 2004 through the OLS estimation method.…”

Section: Empirical Literaturesupporting

confidence: 55%

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Untitled

2022

pse

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The author wants to thank the two anonymous referees, as well as Maja Bukovšak, Vedran Šošić, Krunoslav Zauder, Mate Rosan, Ervin Duraković, Lana Ivičić and Ivica Rubil for their useful comments and suggestions. I would like to express my gratitude to Mrs Frédérique Savignac from the HFCN, the co-author in the paper by Arrondel, Roger and Savignac (2014) for providing a part of the Stata module to integrate generalized ordered probit models with multiple imputed and weighted data. This paper presents the views of the author and should not be interpreted as reflecting the views or opinions of the Croatian National Bank. **

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Section: Error Correction Modelsupporting

confidence: 87%

Section: Empirical Literaturesupporting

confidence: 55%

Untitled

2022

pse

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“…Government spending is also positively related with employment, total govenrment debt and government revenue, implying that a percentage change in each of these explanatory variables will lead to a 0.76 percent, 0.05 percent and 0.098 percent in government spending respectively. Specifically, in terms of the positive relationship between government revenue and government spending, findings of this study resonates with the underlying assumptions of Wagner's Law (Wagner, 1893) and findings of Ukwueze (2015), which maintains that as government revenue increases, there is a desire by the government to increase spending to meet the demands of the people, which eventually exacerbates government spending. The positive association between employment and employment can be explained by the fact that in most cases, unemployment paves a way for government job creation which is done through fiscal expansions such as government spending (Boushey & Ettlinger, 2011).…”

Section: Ardl Bounds Tests and Long-run Analysissupporting

confidence: 80%

“…Studies have endeavoured to examine the determinants and drivers of government spending in both developed and developing economies. A study conducted by Ukwueze (2015) in Nigeria, in an attempt to determine the size of the public sector in Nigeria, found that revenue and investment spending have an influence on government spending in the short-run. The study reports that public debt tends to increase government spending and subsequently hinders growth.…”

Section: Empirical Findingsmentioning

confidence: 99%

Examining Factors That Drive Government Spending in South Africa

Mdluli¹,

Mncayi²,

Camel³

2019

Proceedings of the 52nd International Academic Conference, Barcelona

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The structure of budgets has changed drastically in the past three decades both globally and locally. Most economies have consistently had growing government spending, some spending way more than what they earn especially following the aftermath of the global financial crisis. Literature shows that government spending in high-income countries has been more on social protection, while public servants compensation has dominated spending in many low-income countries, especially in Africa. In South Africa, a weak investment climate, established years of slow economic progress, rising unemployment and poverty levels which have negatively affected the tax base and therefore revenue collection. The country has been spending more money than it earns, to an enormous degree raising worries to research the drivers of this growth in expenditure, subsequently the essential objective of this study was to pinpoint the key factors that have added to this situation. The study adopted a quantitative research approach through the use of quarterly time series data spanning from 1995 through to 2018. An autoregressive distributed lag (ARDL) model was utilized so as to determine the long-and short-run impacts of the chosen variables on government spending. The findings of the study show that government spending in South Africa, particularly after 1994 has been driven more by current spending than capital spending which presents significant economic effects in the long-run. Among the most significant factors, explicitly in the short run, incorporate unemployment levels, rising debt and inflation. Results further revealed that political instability, low economic growth as well as a growing public size and bailouts of unproductive state owned entities (SOEs) induced significant long term consequences on spending. The continued worsening of spending patterns suggests the presence of fundamental obstacles including the country's high unemployment levels, for both adults and youth, inferring that the revenue base keeps on narrowing, while the growing poverty levels forces spending towards current spending such as the growing social welfare needs rather than productive activities such as investment spending. The study recommends that the size of the public wage bill be reduced and many unproductive SOEs be privatized to relieve spending. Additionally, a multidimensional approach is needed which entails the reduction of debt accumulation to have low interest repayments, restructuring the labour market to improve outcomes, expanding the revenue base, creating an environment conducive to private spending and economic growth and promoting a stable and transparent political climate.

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“…Fiscal functions of government are essential specifically for underdeveloped and developing countries because government expenditure creates a path to boost up their national output (Ukwueze, 2015). Over the years, the structure and size of the public sector regarding its expense have grown tremendously in many economies, especially after the 2 nd World War.…”

Section: Introductionmentioning

confidence: 99%

Determinants of the Size of the Government Expenditure: An Empirical Study on Bangladesh

Firoj¹,

Sultana²,

Sultana³

2018

IJEF

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Analysis of the nature of government expenditure constitutes a central concern in economic literature. This is because many countries of the world consistently have increased the size of government expenditure. Bangladesh has done the same practice over the last few decades. There is a need to investigate the factors which determine the size of the public spending of Bangladesh. The error correction modeling technique for the short-run dynamic equation and ordinary least square (OLS) for long-run static equation are used over the period 1973 to 2016 to this purpose.  The results of the short run dynamic equation and long-run static equation showed that external debt, real GDP, urbanization, tax, and non-tax government revenue positively influence the government expenditure where dependency on foreign aid and trade openness adversely affect it. The study recommends that the government should take proper step to expand the revenue base, stimulate the economic growth and reduce the external debt, and foreign aid.

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Determinants of the Size of Public Expenditure in Nigeria

Cited by 27 publications

References 32 publications

Untitled

Untitled

Examining Factors That Drive Government Spending in South Africa

Determinants of the Size of the Government Expenditure: An Empirical Study on Bangladesh

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