Public Sector Financial Management and Output Growth in Nigeria: A Predictive Causality Test and Two-stage Least Square Approach

Odior, E.S.O.; Alenoghena, Raymond Osi

doi:10.18533/jefs.v2i01.45

Cited by 3 publications

(5 citation statements)

References 4 publications

(4 reference statements)

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“…Copyright © 2022, Journal La Bisecoman, Under the license CC BY-SA 4.0 Odior & Alenoghena (2014) quantified the impact of public sector financial management on Nigeria's gross domestic product. For data from 1970 to 2012, the research employed a predictive causality test, a two-stage least squares (2SLS) technique, and instrumental factors.…”

Section: Literature Reviewmentioning

confidence: 99%

Public Sector Financial Management and Economic Growth Sustainability in Nigeria: 1986 to 2020

Anyanwu

Ananwude

2022

JLB

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The Nigerian experience with public sector finance management demonstrates fiscal irresponsibility. In Nigeria, the public sector is comprised of the Federal, State, and Local governments, as well as parastatals and organizations that provide public goods and services. Nigeria's public sector, with its diverse financing sources, plays a critical role in economic management via the creation and execution of economic policies, efficient budgeting and planning targeted at attaining domestic and external balancing goals. The purpose of this research was to determine the influence of public sector financial management on the sustainability of economic development in Nigeria. The research examined the influence on real gross domestic product of total federally collected income and total government spending. The Autoregressive Distributive Lag (ARDL) technique was used to analyze data spanning the years 1986 to 2020. To begin, the findings indicate that there is no long-run association between public sector financial management and the sustainability of economic development in Nigeria. Second, overall federal revenue was shown to have a positive association with real gross domestic product. Thirdly, public sector financial management has no discernible influence on the sustainability of economic development in Nigeria. This report recommends that the ideal of sound public sector financial management be embraced in order to strengthen the sustainability of economic development in Nigeria via an effective, efficient, and transparent public account management system.

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Section: Literature Reviewmentioning

confidence: 99%

Public Sector Financial Management and Economic Growth Sustainability in Nigeria: 1986 to 2020

Anyanwu

Ananwude

2022

JLB

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“…Premchand (1999) states that there is a connection between PFM and the community's aspirations with resources. Odior and OsiAlenoghena (2014) have pointed out a significant relationship between government financial management and output growth in the case of Nigeria. The authors conclude that managing the inflows and outflows of financial funds from the government treasury has a strong connotation with economic prosperity.…”

Section: Literature Reviewmentioning

confidence: 99%

“…PFM is associated with all aspects of resource mobilization and expenditure management at the aggregate level. Based on theoretical postulates and following Odior and OsiAlenoghena (2014), the relationship between growth and public sector financial development can be specified as:…”

Section: Data Empirical Model and Econometric Strategymentioning

confidence: 99%

Public Financial Management and Growth Interaction: Evidence from the Two-Stage Least Square Approach

Ashraf¹,

Jamshaid²,

Batool³

2021

Int. j. bus. econ. aff.

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Financial Management in the Public sector is an essential part of the country's development process. Public Sector Financial Management (PFM) encompasses the collection and utilization of revenue. Financial Management Reforms are developments and change over time in finance. In this context, the objective of this study is to explore the impact of PFM on output growth in the case of Pakistan. This study also investigates the effect of public sector financial reforms (implemented in the 1990s) on GDP, the proxy of output growth. Tax reforms included in this study to show a structurally different tax pre and post. The time-series data covering the period from 1977 to 2018 has been taken in this study.Econometrics methodology includes Unit root test, Causality test, and Two-Stage Least squares (2SLS). The 2SLS approach is implemented due to endogeneity. There is an existence of reverse causation between the variables, which shows that the change in domestic and external debt shows bilateral causality with output growth. The results of 2SLS show that PFM has a promising impact on output growth. In this regard, domestic debt positively and external debt is negatively associated with output. The government spending on social services, community services, economic services, and reforms positively impacted the economy.On the other hand, government expenditure on administration, defense, and transfer of payment results in decreasing output. Therefore, the study concludes that the behavioral trend, the social context, and time limits set for the achievement of set goals must be considered by effective public sector financial management in Pakistan. This paper will help policymakers allocate the limited resources and help in strategic priorities to spur reallocation from lesser to higher priorities to ensure allocation efficiency.

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“…Literature on this issue has been limited to countries outside the SSA (see, for instance, Asandimitra & Kautsar, 2017; Nidar & Bestari, 2012; Prihartono & Asandimitra, 2018). Few of them in Nigeria are not on the SOEs, which is the focus of this study (Odior & Alenoghena, 2017;Mudzingiri et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

“…The rising cases of financial mismanagement among administrators of SOEs in Nigeria have continued to generate a lot of concerns for both local and international agencies as they continue to affect the performances of the SOEs (Lee 2018; Laeeq et al, 2016). The structure of SOEs in Nigeria by default has a decentralized leadership controlled by the board and the management with representatives from the six geo-political zones in the country (Odior & Alenoghena, 2017). According to Idike et al (2019), it is believed this would prevent dictatorship and autocratic style of leadership that can aid the commission of financial fraud.…”

Section: Introductionmentioning

confidence: 99%

Analyzing the determinants of financial management behavior of administrators in Nigerian state-owned enterprises

Kayode

Sibanda

Olarewaju

2022

Investment Management and Financial Innovations

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This study assessed the factors that determine the financial management behavior of administrators in state-owned enterprises (SOEs) in Nigeria. The rising cases of financial mismanagement, which was associated with the financial management behavior of top administrators in these SOEs, prompted this study. It is believed that identifying the factors that determine the financial management behavior of these administrators would help to find solutions to the problem. Based on the multistage sampling technique, 385 top administrators from the SOEs at the federal level in Nigeria participated in the survey. Quantitative analysis was used to analyze the data and the results show that income, family size, and financial literacy are the most important factors affecting the financial management behavior of the administrators. It is recommended that there should be an improvement in income and other working conditions of the administrators in the SOEs since income has been confirmed to be an important shift factor of financial management behavior. In the same vein, given the role of family size, it is recommended that efforts on population reduction should be intensified. Finally, financial literacy should be given priority in checkmating irresponsible financial management behavior.

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Public Sector Financial Management and Output Growth in Nigeria: A Predictive Causality Test and Two-stage Least Square Approach

Cited by 3 publications

References 4 publications

Public Sector Financial Management and Economic Growth Sustainability in Nigeria: 1986 to 2020

Public Sector Financial Management and Economic Growth Sustainability in Nigeria: 1986 to 2020

Public Financial Management and Growth Interaction: Evidence from the Two-Stage Least Square Approach

Analyzing the determinants of financial management behavior of administrators in Nigerian state-owned enterprises

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