Government Expenditures and Human Development in Nigeria: A Disaggregated Approach | Chapter 3 | New Advances in Business, Management and Economics Vol. 8This study evaluates the effect of disaggregated government expenditure on human development in Nigeria from 1981 to 2019. The role of government expenditures impact on human development cannot be overemphasised. The study was motivated by the methodology approach used by the past studies and examined the relationship between government expenditure and human development, where an aggregated approach was adopted in most of these studies. However, this approach can overblow the efficacy, performance and impact of government expenditure policies. In order to have a more robust and accurate assessment of the efficacy, performance and effect of government expenditure on human development, a disaggregated approach was employed. Government expenditure was proxied by government capital and recurrent expenditure on education, health, and other social and community services, while human development is proxied by the human development index (HDI). Ex-post facto research design was adopted while the Augmented Dickey Fuller (ADF) test, Autoregressive Distributed Lag (ARDL) model was employed as the estimation and analysis technique. The findings revealed that government capital (β = 0.006335 with p-value of 0.7229 > 0.05) and recurrent (β =0.047668 with p-value of 0.1106 > 0.05) expenditure on health have a weak and insignificant effect on human development, respectively. The result further revealed that government capital (β = 0.119582 with p-value of 0.0000 ˂ 0.05) and recurrent (β = 0.048834 with p-value of 0.0519 within the range of 0.05) expenditure on education have a significant positive effect on human development in Nigeria. The findings also revealed that government capital (β = 0.021134 with p-value of 0.0466 ˂ 0.05) and recurrent (β = 0.034182 with p-value of 0.0270 ˂ 0.05) expenditure on other social and community services have a significant positive effect on human development in Nigeria. The study concluded that government capital and recurrent expenditure invested in education and other social and community services had a positive effect on human capital development in Nigeria, while government capital and recurrent expenditure invested in health had no significant effect on human development in Nigeria. The study recommended, amongst others, that the Nigerian government should prioritise the increase of investment in the education sector by increasing education expenditure, as it has a significant positive impact on human development. It is also significant to improve the funding of other social and community services to further boost human capital outcomes. Author (s) Details MUAZU, AUWALU Department of Accounting, Faculty of Administration, Nasarawa State University, Keffi, Nigeria. A.S, ALHASSAN Department of Accounting, Faculty of Administration, Nasarawa State University, Keffi, Nigeria. I.O, ABDULLAHI Department of Accounting, Faculty of Administration, Nasarawa State University, Keffi, Nigeria. Please see the book here:- https://doi.org/10.9734/bpi/nabme/v8/5246

This study evaluates the effect of disaggregated government expenditure on human development in Nigeria from 1981 to 2019. The role of government expenditures impact on human development cannot be overemphasised. The study was motivated by the methodology approach used by the past studies and examined the relationship between government expenditure and human development, where an aggregated approach was adopted in most of these studies. However, this approach can overblow the efficacy, performance and impact of government expenditure policies. In order to have a more robust and accurate assessment of the efficacy, performance and effect of government expenditure on human development, a disaggregated approach was employed. Government expenditure was proxied by government capital and recurrent expenditure on education, health, and other social and community services, while human development is proxied by the human development index (HDI). Ex-post facto research design was adopted while the Augmented Dickey Fuller (ADF) test, Autoregressive Distributed Lag (ARDL) model was employed as the estimation and analysis technique. The findings revealed that government capital (β = 0.006335 with p-value of 0.7229 > 0.05) and recurrent (β =0.047668 with p-value of 0.1106 > 0.05) expenditure on health have a weak and insignificant effect on human development, respectively. The result further revealed that government capital (β = 0.119582 with p-value of 0.0000 ˂ 0.05) and recurrent (β = 0.048834 with p-value of 0.0519 within the range of 0.05) expenditure on education have a significant positive effect on human development in Nigeria. The findings also revealed that government capital (β = 0.021134 with p-value of 0.0466 ˂ 0.05) and recurrent (β = 0.034182 with p-value of 0.0270 ˂ 0.05) expenditure on other social and community services have a significant positive effect on human development in Nigeria. The study concluded that government capital and recurrent expenditure invested in education and other social and community services had a positive effect on human capital development in Nigeria, while government capital and recurrent expenditure invested in health had no significant effect on human development in Nigeria. The study recommended, amongst others, that the Nigerian government should prioritise the increase of investment in the education sector by increasing education expenditure, as it has a significant positive impact on human development. It is also significant to improve the funding of other social and community services to further boost human capital outcomes.

 

Author (s) Details

MUAZU, AUWALU
Department of Accounting, Faculty of Administration, Nasarawa State University, Keffi, Nigeria.

 

A.S, ALHASSAN
Department of Accounting, Faculty of Administration, Nasarawa State University, Keffi, Nigeria.

 

I.O, ABDULLAHI
Department of Accounting, Faculty of Administration, Nasarawa State University, Keffi, Nigeria.

 

 

Please see the book here:- https://doi.org/10.9734/bpi/nabme/v8/5246

The Nexus between Government Expenditure and Taxation Controlled by Government Revenue Composition in Kenya| Chapter 2 | New Innovations in Economics, Business and Management Vol. 6

Fiscal policy is crucial to achieving macroeconomic balance in a county. For example, in Kenya, the increase in the amount of public expenditure and the country's fiscal deficits in relation to the country's Gross Domestic Product has resulted in macroeconomic imbalance and the risk associated with this imbalance (GDP). However, despite the fact that the country's transition has greatly improved its fiscal and tax institutions in recent years, building a legal and institutional underpinning for prudent fiscal policies, such an imbalance exists and is growing. Putting in place fiscal policies that have an impact on government spending and taxation, as well as other variables that have an impact on country activities at the macro level, is critical for affecting a country's economic growth and development. The goal of this research was to determine the relationship between government spending and taxes, as well as the control effect of government revenue composition on the relationship between spending and taxation. From 2002 to 2017, the study used a longitudinal research approach to collect secondary data across a sixteen-year period. Data was examined using descriptive and inferential statistics, with Pearson correlation used to test for association and regression analysis used to test for effects between variables. According to the study, government spending does not have a major impact on taxation. Government expenditure and government revenue composition, on the other hand, were found to have a considerable effect on taxation in Kenya when regulated by government revenue composition. To have a substantial impact on the country's taxation position, the government should execute policies that increase tax revenue compared to overall government revenue, in addition to spending more to increase economic activity that generate tax money for the government.

Author(s) Details:

Angela Mucece Kithinji,
University of Nairobi, School of Business, Kenya.

Please see the link here: https://stm.bookpi.org/NIEBM-V6/article/view/6192

Recent Study an Evaluation of the GrowthMaximizing Size of Government Expenditure in a Developing Economy: Evidence from Nigeria | Chapter 10 | Current Strategies in Economics and Management Vol. 2

There has been a significant expansion in the size of government expenditure in most economies around the world. Many studies have shown that there is a negative relationship between government size and economic growth after a certain point of government participation in the economy is reached. This study, therefore, examines the optimal size of government (measured by overall government spending as a percentage of GDP) that maximizes economic growth in Nigeria between the periods 1985-2014. The overall results suggest that the optimal level of government spending is 17% according to the Scully log-linear model and 24% according to the quadratic model making a conclusive range of 17%-24%. The paper concludes that further expansion in the size of government, proxied by government expenditure, is encouraged for improved growth since current spending is below the range suggested by the result of the analysis. However, the study may not boost of same outcome if government expenditure is disaggregated and the government size is measure by the revenue generated.

Author(s) Details 

Ikechukwu Kelikume
Lagos Business School, Pan-Atlantic University, Lagos, Nigeria.

Faith A. Alabi
University of Benin, Benin-city, Nigeria.

Korede Ajogbeje
Lagos Business School, Pan-Atlantic University, Lagos, Nigeria.

View Book :- http://bp.bookpi.org/index.php/bpi/catalog/book/185

Evidence of Wagner’s Law in India Using Time Series from 1960 to 2018 | Chapter 2 | Current Strategies in Economics and Management Vol. 1

Aims: The present study attempts to analyse the behaviour of government expenditure in relation to income using most appropriate advanced econometric techniques to test the Wagner’s law of increasing State’s activity in Indian scenario during the period of 1960 to 2018.  Data: The study uses the IMF database entitled “International Financial Statistics” and World Bank database entitled “World Development Indicators” for testing Wagner’s law for the Indian economy.  Methodology: The study employs appropriate econometric techniques to our model where government expenditure is used as regress and and gross domestic product per capita and urbanisation is used as regressors with a dummy capturing pre and post liberalization effect. The study first investigates for unit roots in data using ADF and PP tests. Further, to investigate any cointegration among variables the study employed Johansen co-integration test. Once co-integration is confirmed, a vector error correction model has been estimated and lastly, Granger causality test is applied to check for any causality. Results: The results of Vector Error Correction Model reveal that both the gross domestic product per capita and the urban population have a positive and statistically significant effect on government expenditure in the long-run. Ceteris paribus, every 1.0 percent increase in GDP per capita leads 0.57 percent increase in government expenditure. On the other hand, 1.0 percent increase in urban population leads to a 2.23 percent increase in government expenditure. The Granger causality results divulge that there is unidirectional causality running from both GDP per capita to government expenditure and from urban population to government expenditure. In short-run, first lag of government expenditure and second lag of urban population influences public expenditure. Dummy coefficient shows that liberalization policies adopted in 1991 in negatively affected the government expenditure but the effect is not significant.  Conclusion: To sum up, the present investigation provides support for Wagner’s law in case of India in the long run only. It has been found that urbanisation has a greater impact on public expenditure than GDP per capita and which is also supported by Granger causality test showing significant unidirectional causality running from GDP per capita to government expenditure and level of urbanisation to government expenditure.

Author(s) Details

Dr. Suraj Sharma 
Department of Economics, S.M. (P.G.) College, Chandausi, Uttar Pradesh (Affiliated to M.J.P Rohilkhand University, Bareilly, U.P.), India

Surendra Singh 
Department of Economics, Government Girls College, Raisen, Madhya Pradesh (Affiliated to Barkatullah University, Bhopal, M.P.), India.

View Book: - http://bp.bookpi.org/index.php/bpi/catalog/book/174