Testing the Robustness of Public Spending Determinants on Public Spending Decisions in Nigeria

Aladejare, Samson Adeniyi

doi:10.1080/10168737.2019.1570302

Cited by 18 publications

(23 citation statements)

References 31 publications

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“…Specifically, in a developing country such as Nigeria, Adamu and Chandana (2019) argued that the core objective of the government is mainly to improve on societal welfare through the introduction of relevant legal, political, economic, and social agendas. This, therefore, has led to growth in the magnitude, and structure of the Nigerian public sector as evidence in its outlay since the 1970s (Aladejare, 2019).…”

Section: Introductionmentioning

confidence: 99%

Are public spending determinants significant in per capita budget spending decisions in Nigeria?

Aladejare

2020

Int. J Fin Econ

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The motivation for this study had been to assess whether the established determinants of public spending decisions in Nigeria which are government revenue, the inflation rate, the exchange rate, the growth rate of real gross domestic product, and the international price of oil, do actually affect per capita budget spending as assumed by the fiscal authorities. However, evidence from the baseline symmetric and asymmetric auto-regressive distributive lag regressions suggest otherwise. A further probe by adding population growth rate, and gross fixed capital formation to the baseline variables to have a robust regression, suggests that while gross fixed capital formation which measures for infrastructure development was insignificant, population growth rate was crucial for the instituted determinants to exert substantial effect on per capita spending. This outcome can be taken as evidence of why the budget on a yearly basis is being perceived by most citizens as an ineffective tool of fiscal policy. Since the fiscal authorities have continued to always assume that factors that play crucial role in formulating their spending decisions; are the same with those necessary in deciding the share of Nigerians in the budget; without due consideration for population growth. Hence, ridiculing whatever goal the budget is set out to achieve.

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Section: Introductionmentioning

confidence: 99%

Are public spending determinants significant in per capita budget spending decisions in Nigeria?

Aladejare

2020

Int. J Fin Econ

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“…The Toda and Yamamoto (1995) causality approach is preferred to the ordinary Granger causality test due to its compatibility with incorporating variables in a standard vector autoregressive model in their level form (Aladejare, 2019). This negates the fitting in first difference as common with the Granger causality approach, thereby lowering the margin for error that is likely to occur in terms of erroneously identifying the nature of integration of the variables.…”

Section: The Toda-yamamoto Causality Approachmentioning

confidence: 99%

Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria

Aladejare¹

2021

jpfs

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The motivation of this study has been to identify the effects of the multidimensional perspectives of macroeconomic volatility on the growth of external debt in Nigeria from 1970 to 2018. Methodologically, the Auto-Regressive Distributed Lag (ARDL) model and the Toda-Yamamoto causality approach were adopted. For the purpose of understanding the multidimensional perspective of macroeconomic volatility, macroeconomic volatility was disaggregated into three different perspectives which are: volatility from macroeconomic outcomes, domestic sources, and external sources. Findings from the study suggest that while volatility from macroeconomic outcomes exclusively affects external debt in the long-term, effects from the three sources were very substantial in the short-term. Furthermore, the causality result indicates bidirectional nexus between volatility from macroeconomic outcomes and external debt. Also, the irregular variations in the Nigerian political space, unanticipated disease outbreaks, and the effects of the 1986 recession in the country all significantly worsened the country's external debt situation. Thus, the study recommended amongst others that since developing countries such as Nigeria cannot do away with the demand for external debt to finance its economic growth, it is also important to count the cost such financing provides even if faster growth is actually realise.

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“…This is because government is needed to correct short term distortions in an economy (Jibir & Aluthge, 2019b;Singh & Sahni, 1984) and to create socially optimal direction for growth and development of a country (Ram, 1986). Government also exists so as to provide basic services such as health, education, communication, transportation, among others, through expenditures which have an impact on the wellbeing of citizens and business environment for the private sector (Aladejare, 2019;Jibir & Aluthge, 2019b;Ukwueze, 2015).…”

Section: Theoretical Literaturementioning

confidence: 99%

“…Hence, application of unit root test with structural breaks is essential to point the possibility of having structural breaks among the series. More so, the rationale for the use of multiple break techniques is because considering just one endogenous break can be deficient and can result in loss of information in the presence of more than one break in the series (Aladejare, 2019;Lumsdaine & Papell, 1997).…”

Section: -174mentioning

confidence: 99%

Impact of Government Expenditure on Economic Growth in Nigeria, 1970-2019

Aluthge

Jibir

Abdu

2021

CBN-JAS

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This study investigates the impact of Nigerian government expenditure (disaggregated into capital and recurrent) on economic growth using time series data for the period 1970-2019. The paper employs Autoregressive Distributed Lag (ARDL) model. To ensure robustness of results, the study accounts for structural breaks in the unit root test and the co-integration analysis. The key findings of the study are that capital expenditure has positive and significant impact on economic growth both in the short run and long run while recurrent expenditure does not have significant impact on economic growth both in the short run and long run. The study recommends that government should increase the share of the capital expenditure especially on meaningful projects that have direct bearing on the citizen’s welfare. Government should also improve the spending patterns of recurrent expenditure through careful reallocation of resources toward productive activities that would enhance human development in the country.

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Testing the Robustness of Public Spending Determinants on Public Spending Decisions in Nigeria

Cited by 18 publications

References 31 publications

Are public spending determinants significant in per capita budget spending decisions in Nigeria?

Are public spending determinants significant in per capita budget spending decisions in Nigeria?

Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria

Impact of Government Expenditure on Economic Growth in Nigeria, 1970-2019

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