Paper Title
The Developmental Implications of Nigeria’s Public Spending: An ARDL Analysis
Article Identifiers
Authors
Dr. Aniefiok Benedict Udo , Dr. Boniface Linus Akpan , Dr. Oniko Ndoma Nsor
Keywords
Developmental state, Government Expenditure, Bound Test, Causality, Economic Development
Abstract
In the context of a developmental state, fiscal policy is still widely recognized as a potent tool for enhancing growth, redistributing income, and reducing poverty in an economy. Whereas the growth and development of the Nigerian economy have not been stable over the years as a result, the country's economy has witnessed so many shocks and disturbances both internally and externally over the decades. There exists a consensus in the literature that an adequate and effective macroeconomic policy is critical to any successful development process aimed at achieving high employment, sustainable economic growth, and price stability. Is the Nigerian government a developmental state? In an attempt to answer this question, this study examined the short and long-run impact of public expenditure on economic development in Nigeria from 1980 to 2020. Specifically, it seeks to determine the nature and direction of causality between government spending and economic development. The study employs the pairwise Granger causality technique and Autoregressive distributed lagged (ARDL) model to evaluate the empirical evidence of the impact of public expenditure on economic development, measured by poverty level in Nigeria. After testing for Granger causality, the result reveals that there is a bidirectional relationship between government spending and economic development in Nigeria. Also, the analysis showed that there is a long-run relationship between public expenditure and economic development in Nigeria. Based on these findings, the study concludes that the Federal Government should ensure increased interventions in key sectors of the economy concerning government spending knowing that it affects the level of economic development. Therefore, this study recommends that to achieve sustainable economic development in Nigeria, Government expenditure should be increased in the health, education, and agricultural sectors in the economy
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How To Cite (APA)
Dr. Aniefiok Benedict Udo, Dr. Boniface Linus Akpan, & Dr. Oniko Ndoma Nsor (May-2023). The Developmental Implications of Nigeria’s Public Spending: An ARDL Analysis. INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT, 8(5), f449-f462. https://ijnrd.org/papers/IJNRD2305569.pdf
Issue
Volume 8 Issue 5, May-2023
Pages : f449-f462
Other Publication Details
Paper Reg. ID: IJNRD_196010
Published Paper Id: IJNRD2305569
Downloads: 000121980
Research Area: Social Science and HumanitiesÂ
Country: Uyo, Akwa Ibom State, Nigeria
Published Paper PDF: https://ijnrd.org/papers/IJNRD2305569.pdf
Published Paper URL: https://ijnrd.org/viewpaperforall?paper=IJNRD2305569
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