Government expenditure and standard of living in an emerging market in Africa–Nigeria

Jeff-Anyeneh, Sarah Elechi; Ananwude, Amalachukwu Chijindu; Ezu, Gideon; Nnoje, Andrew Izuchukwu

doi:10.20885/ejem.vol12.iss2.art4

Cited by 7 publications

(6 citation statements)

References 9 publications

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“…But for the overall level of significance, Prob. (F-Statistic) 0.000000 is less than the 0.05 level of significance; indicating that all the independent variables can jointly influence the dependent variable for the period under review; hence, our null hypotheses are rejected and alternative accepted.Discussion of FindingsThe results of this study confirmed those of other studies in related fields, such asMurita & Taiwo (2011), who examined government spending and economic development in Nigeria between 1970 and 2008 and found a positive relationship between real GDP and recurrent and capital expenditure;Jeff-Anyeneh et al (2020), who looked at government spending and standard of living in an emerging market in Africa-Nigeria-between 1981 and 2008-and found a positive relationship between real GDP and recurrent and capital expenditure.…”

supporting

confidence: 89%

Disaggregated Analysis of Public Expenditure and Economic Development on the Nigerian Economy

ASIAGWU

UGHERUGHE²,

EZEABASILI

2023

Int. j. manag. entrep. res

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This study empirically investigated public expenditure and economic development of Nigeria. To achieve this objective, relevant data used spanning from 1981-2021 were sourced from Central Bank of Nigeria (CBN) Statistical Bulletin for the period under review. Descriptive statistics, Augmented Dickey Fuller (ADF) Unit root test, Granger causality and Ordinary Least Square (OLS) regression were the analytical tools for this study. Real Gross Domestic Product (RGDP) was used as the dependent variable while capital expenditure on administration, capital expenditure on economic services, capital expenditure on Social and Community Services, capital expenditure on Transfers, recurrent expenditure on administration, recurrent expenditure on economic services, recurrent expenditure on Social and Community Services, and recurrent expenditure on Transfers as the independent variables. Based on the analysis, the F-statistic of the regression output stood at 56.23992, this implies that the regression plane is statistically significant. Also, the Prob.(F-Statistic) 0.000000 is less than the 0.05 level of significance implies that there is a statistical significant relationship between the variables. R2 = 0.933599 implies that about 93.36% of the total variation in the model specified was accounted for by the independent variables. RGDP and RES are platykurtic, CSCS, RA, and RSCS are mesokurtic, and CA, CES, CSCS, CT, and RT are leptokurtic, according to the descriptive analysis, which also showed that all the variables were normally distributed; All of the variables were stationary and significant at their respective values. RGDP granger caused CA, CES, CSCS, CT, RES, RSCS, and RT, so it is unidirectional causality, however RGDP granger cause RA while RA granger cause RGDP, therefore there is bi-directional causality between the two. There is the existence of a long-run relationship between the variables as the result the Johansen co-integration test indicates six co-integration equation. Therefore, public expenditure has significant impact on economic development of Nigeria. In conclusion, public expenditure (capital and recurrent) is an important determinants of economic growth and development in Nigeria. The study recommended that Government spending if properly managed will raise the nation’s production capacity and employment, which in turn increase economic growth in Nigeria, also government should increase its expenditure on rural development, roads, water and electrification in order to accelerate the level of productivity, increase income and raise the standard of living of poor citizens in Nigeria Keywords: Real Gross Domestic Product, Administration, Economic Services, Total Social and Community Services and Total Transfers expenditures.

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supporting

confidence: 89%

Disaggregated Analysis of Public Expenditure and Economic Development on the Nigerian Economy

ASIAGWU

UGHERUGHE²,

EZEABASILI

2023

Int. j. manag. entrep. res

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“…Tables 3, 4 and 5 reveal that there is a long-run relationship between government expenditure, real gross domestic product, gross fixed capital formation, and national savings. This assertion is based on the fact that the values of the f-statistic of 4.31 (Table 3), 18.81 (Table 4), and 9.04 (Table 5) are higher than the upper and lower bound test of 3.87 and 3.10 respectively at a 5% significance level. On the other hand, no long-run relationship was found between government expenditure and manufacturing capacity utilization in Nigeria as of 3.11 (Table 6) is less than the upper bound test of 3.87.…”

Section: Stationarity Test For the Study Variablesmentioning

confidence: 99%

Effect of federal government expenditure on economic growth in Nigeria

Nwankwo

Nwakoby

Anyanwu

et al. 2022

jis

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Purpose. This study presents an evaluation of the effect of federal government expenditure on economic growth in Nigeria during the period 1986–2020. Economic growth in Nigeria over the years (precisely from 1986 when the Structural Adjustment Programme was introduced) is not in tandem with the magnificent rise in total government expenditure covering this period. The citizens have seen leadership in Nigeria as a failed litmus test, some have left the country to seek for “greener pastures” abroad. Specifically, this study examined the effect of recurrent and capital expenditure of the government on real gross domestic product, gross fixed capital formation, savings, and manufacturing capacity utilization. Results. The result of the analysis revealed that government recurrent expenditure has significant effect on real gross domestic product, gross fixed capital formation, and savings. Government recurrent expenditure is negatively related with real gross domestic product, gross fixed capital formation, savings, and manufacturing capacity utilization. Similarly, government capital has positive relationship with gross fixed capital formation and manufacturing capacity utilization, whereas it is negatively related with real gross domestic product and savings. Scientific novelty. The review of previous studies on economic growth is majorly measured using real gross domestic product. However, this study takes a new dimension by introducing three other variables: gross fixed capital formation, savings, and manufacturing capacity utilization which also reflect the level of growth in an economy. In addition, the application of the Auto-Regressive Distributive Lag (ARDL) model which takes into consideration of the different order of integration of time series data as against the Johansen co-integration that characterized previous studies in the Nigeria environment, will robustly help in determining the short run and long run effects of Federal Government expenditure on economic growth fundamentals in Nigeria. Practical value. This study therefore, is re-echoing the need for government to make capital expenditure her priority. By this, the government should allocate at least 50.0 % of her total expenditure on capital projects. The present-day practice of allocating only 16.6 % (based on year 2020 approved budget of the Federal Government) for capital expenditure will not to a great extent accelerate the pace of economic growth and development in Nigeria.

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“…Government revenue provides the financial underpinning for governments to operate and offer services to their populations. Effective management and utilization of government revenue are critical for establishing economic stability, encouraging equitable development, and meeting a nation's diversified requirements (Jeff-Anyeneh et al, 2020).…”

Section: Government Incomementioning

confidence: 99%

Effect of petrol subsidy removal on government income, cost of living, consumption patterns, savings and investment, and SMEs performance

Mohammed,

Khalifa,

Abubakar

2024

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The purpose of this study is to examine the effect of petrol subsidy removal on government income, cost of living, consumption patterns, savings and investment, and SMEs performance. The study adopted a survey research design, and the population comprised government officials, SME operators, and individual households in the state capital metropolis of the North Central states in Nigeria. We used a convenient sampling technique to select the respondents from a sample size of 483. The study used a questionnaire to collect data, and SmartPLS used partial least squares structural equation modeling for analysis. The study found that petroleum subsidies have a negative and significant effect on consumption patterns, the cost of living, savings and investment, and SME performance. However, it has a positive and significant effect on government income. The study also found that government income and SMEs performance have a positive and significant effect on living standards among people in north-central Nigeria. The study emphasises the need for well-calibrated strategies to minimise the socioeconomic effects of the government's petrol subsidy removal policy. Targeted social safety nets, poverty reduction programmes, and alternative energy investment must balance budgetary sustainability and citizen well-being. SMEs must adjust to changing customer behaviour, and individuals must be encouraged to make smart financial decisions to counterbalance petrol subsidy removal.

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Government expenditure and standard of living in an emerging market in Africa–Nigeria

Cited by 7 publications

References 9 publications

Disaggregated Analysis of Public Expenditure and Economic Development on the Nigerian Economy

Disaggregated Analysis of Public Expenditure and Economic Development on the Nigerian Economy

Effect of federal government expenditure on economic growth in Nigeria

Effect of petrol subsidy removal on government income, cost of living, consumption patterns, savings and investment, and SMEs performance

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