Government Capital Expenditure and Private Sector Investment in Nigeria: Co-integration Regression and Toda-Yamamoto Causality Analysis

Olaifa, Felix Gbenga; Benjamin, Oluwasegun Olawale

doi:10.21467/ajss.6.1.71-82

Cited by 5 publications

(3 citation statements)

References 18 publications

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“…However, the finding is in line with Azuh et al (2020), who prove that government health expenditure increases mortality rate in Nigeria. The adverse effect of government health expenditure can be attributed to mismanagement, a nonchalant government attitude toward the health sector and high level of corruption that has bedevilled the Nigerian economy (Azuh et al 2020;Olaifa and Benjamin 2019). Though government health expenditure adversely affects human health in the short run, there is evidence that the government adjusts and addresses the factors limiting the effectiveness of the health fund in the long run.…”

Section: Discussion Of the Empirical Resultsmentioning

confidence: 99%

Fossil Energy Consumption, Carbon Dioxide Emissions and Adult Mortality Rate in Nigeria

Olawale Benjamin,

Wilfred Akinola,

Adepoju Adeoba

2023

MGT

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The health implications of fossil energy consumption and carbon dioxide(CO2) emissions remain a global concern. This study examines the effectof fossil energy consumption and CO2 emissions on adult mortality rate inNigeria. The study relies on the Health Production Function and utilisesthe Autoregressive Distributed Lag technique to analyse time series datafrom 1980 to 2019. The results of the estimated model show that fossil energyconsumption reduces adult mortality rates in the short run, while co2emissions increase adult mortality rates both in the short and long run.In addition, government health expenditure follows an inverted U-shaperelationship in explaining adult mortality while foreign direct investmenthas a U-shape relationship with adult mortality in Nigeria. Trade opennessand monetary policy are insignificant in the short and long run. Itis recommended that the government should substitute clean energy forfossil fuel energy to improve the quality of life, strengthen CO2 emissionstax and ensure health funds are used for the improvement of healthcareservice delivery in Nigeria.

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Section: Discussion Of the Empirical Resultsmentioning

confidence: 99%

Fossil Energy Consumption, Carbon Dioxide Emissions and Adult Mortality Rate in Nigeria

Olawale Benjamin,

Wilfred Akinola,

Adepoju Adeoba

2023

MGT

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“…However, a couple of studies have examined the effect of military spending on foreign direct investment in Nigeria (Aderemi, et al 2018;Edith et al, 2010). Some studies also examined the effect of the general government on private investment in Nigeria without a specific reference to the influence of military spending on private investment (Akinlo and Oyeleke, 2018;Olaifa and Benjamin, 2020). Given the paucity of studies on the nexus between military spending and private investment in Nigeria, this study is conducted to fill this gap.…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of military spending on private investment in Nigeria: does a crowding-out effect exist?

Raifu

2022

Eur J Gov Econ

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This study adopts ARDL and VAR estimation methods to examine whether military spending crowd-out or crowd-in private investment in Nigeria. We use the data that covers the period from 1970 to 2019. Our results, based on the ARDL method, show that military spending only crowds-out private investment in the short run. In the long run, military spending crowds in private investment. The results are robust to the use of alternative estimation methods. Specifically, IRF results show that military spending has a contemporaneous negative effect on private investment. However, the negative effect turns positive after the third period. Also, FEVD results show that most of the variation in private investment is explained by its shock and few by military spending. Our findings have policy implications. While it is advisable to spend more on the military to curtail the activities of insurgents, bandits and kidnappers and to restore confidence in investors, it is important also to take cognisance of the fact that military spending can crowd out private investment.

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“…Notable studies in this field include Okulegu (2013), Osundina, Ebere, and Osundina (2014), Ebunoluwa and Yusuf (2018), Oriavwote and Ukawe (2018), Oserei and Uddin (2020), and Olaifa and Benjamin (2020). Most empirical studies have primarily relied on per capita income as a proxy for measuring poverty, neglecting alternative indicators like the poverty headcount index.…”

Section: Introductionmentioning

confidence: 99%

Government Expenditure and Poverty Reduction in Nigeria, 1986-2022: A Disaggregated Approach

Ejemezu,

Ajala

2023

AJSD

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Poverty in Nigeria is a complex issue that demands urgent government attention. With approximately 63% of the population living below the poverty line in 2022, understanding the relationship between government expenditure and poverty is crucial. Despite existing studies focusing on the impact of government expenditure on economic growth, few have explored the relationship between government expenditure from different sectors and poverty. This study aims to address this gap by investigating the effects of government expenditure in various economic sectors on poverty in Nigeria from 1986 to 2022. Using government expenditure on education, health, security, building and construction, and roads as proxies, and the head count index as a proxy for poverty, this study analyzed secondary data from the CBN Statistical Bulletin and National Bureau of Statistics. The Johansen cointegration and vector error correction mechanisms were employed as estimation methods. The findings indicate that all selected government expenditures had positive short-term effects on poverty, but negative long-term effects, except for government expenditures on roads. This suggests that government expenditure has a reducing effect on poverty in the long term, but is not effectively addressing poverty in the short term. The study concludes that government expenditure plays a significant role in reducing poverty in the long run. As a recommendation, the study suggests prioritizing infrastructure development, particularly in road construction and public transportation, to improve citizens' mobility, reduce transportation costs, and facilitate easy movement with the motive of reducing the poverty rate among Nigerians.

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Government Capital Expenditure and Private Sector Investment in Nigeria: Co-integration Regression and Toda-Yamamoto Causality Analysis

Cited by 5 publications

References 18 publications

Fossil Energy Consumption, Carbon Dioxide Emissions and Adult Mortality Rate in Nigeria

Fossil Energy Consumption, Carbon Dioxide Emissions and Adult Mortality Rate in Nigeria

Effect of military spending on private investment in Nigeria: does a crowding-out effect exist?

Government Expenditure and Poverty Reduction in Nigeria, 1986-2022: A Disaggregated Approach

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