Nigeria Government’s Expenditure on Economic and Social Service Development: A Canonical Correlation Analysis Approach

Main Article Content

Rafiu Olayinka Akano
Samuel Olorunfemi Adams

Abstract

The study examine the effect of Government’s expenditure on economic and social services development in Nigeria over the period of 1961 to 2018. The study used Canonical Correlation Analysis, the test carried out include; Structure Vector for Economic and social Service and Redundancy Index. The result reveals that strong positive relationship exists between national recurrent expenditure and economic service and Social service. The study also discover that Nigeria Government placed more emphasis on other economic services like; Oil and gas, trade, infrastructure and manufacturing, followed by Transport and Communication, Construction, and Agriculture being the least. In the case of the Social service, it was discovered that Nigeria Government placed more emphasis on other social services like; food subsidies, police, fire services, housing, community management, policy research, information and labour, followed by Health, and Education being the least. Based on the findings, the study recommends that, all tiers of government and policy makers should implement policies that will aid improvement in Transportation and Communication, Construction, Agriculture, Health and Education.

Keywords:
Canonical correlation, economic services, social services, structure vector, redundancy index

Article Details

How to Cite
Akano, R., & Adams, S. (2019). Nigeria Government’s Expenditure on Economic and Social Service Development: A Canonical Correlation Analysis Approach. Archives of Current Research International, 18(4), 1-12. https://doi.org/10.9734/acri/2019/v18i430142
Section
Original Research Article

References

United Nation Development Programme Annual Report. Living Up to its Commitments. 2008/2009.

Nwodo OS, Ukaegbu C. Public social expenditure mix and economic growth in Nigeria. Journal of Economics and Sustainable Development. 2017;8(11):29-37.

Yildirim AK. Economic development via human development. The Fountain Magazine. The Light Inc; 2008.

Nelson JN, Markjackson D, Timipere ET. Effect of government social expenditure on economic growth In Nigeria. International Journal of Innovative Research And Advanced Studies (IJIRAS). 2018;5(1):265 – 276.

Tornell A, Westerman F, Martinez L. Liberalization, growth and financial crises: Lessons from Mexico and developing World. Brookings Papers on Economic Activity. 2003;34(2):1–112.

Rajesh G. The Impact of Government Expenditure on Economic Growth in Nepal; 2018.

Al-Yousif Y. Does government Expenditure inhibit or promote economic growth: Some empirical evidence from Saudi Arabia. Indian Economic Journal. 2018;48(2).

Abdullah HA. The relationship between government expenditure and economic growth in Saudi Arabia. Journal of King Saud University. Administrative Science. 2000;12(2):173- 191.

Ranjan KD, Sharma C. Government expenditure and economic growth: Evidence from India. The ICFAI University Journal of Public Finance. 2008;6(3):60– 69.

Cooray A. Government expenditure, governance and economic growth. Comparative Economic Studies. 2009;51 (3):401–418.

Miftahu IM, Rosni BR. Public sector spending and economic growth in Nigeria: In search of a stable relationship. Asian Research Journal of Arts and Social Sciences. 2017;3(2):1-19.

Central Bank of Nigeria Statistical Bulleting. 2017;28.

World Poverty Clock. The Percentage of Nigerians Living in Extreme Poverty Could Increase by 2030; 2018.

Mordi NO, et al. Macro-Economic Model of The Nigerian Economy. Research Development, Central Bank of Nigeria, Central Business District Garki, Abuja; 2010.

Agbonkhese AO, Asekome MO. Impact of public expenditure on the growth of Nigerian Economy. European Scientific Journal. 2014;10(28).

[ISSN: 1857-7881]

Okere PA, Uzowuru LN, Amako JC. International Journal of Economics and Financial Management. 2019;4(2):19–41.

Okemini EB, Uranta DT. Poverty and criminality in the Niger-Delta region: A Critical Analysis. Integrated Social and Management Journal. 2008;1:1-8.

Omoke P. Government expenditure and National income: A causality test for Nigeria. European Journal of Economics and Political Studies. 2009;2:1–11.

Oni LB, Aniakam O, Akinsanya TA. Joint effects of capital and recurrent expenditure in Nigeria's economic growth. European Journal of Globalization and Department Research. 2014;9:529–543.

Salawu RO. Essentials of Public Finance. Obafeini Awolowo University Press LTD, Nigeria; 2005.

Anyanwu JC. Monetary Economics: Theory, Policy and Institutions, Hybrid Publishers, Nigeria; 1993.

Mehrara M, Abrishami H, Boroujli M, Amin M. Government expenditure and economic growth in Iran. International Letters of Social and Humanistic Sciences. Sci. Press Ltd., Switzerland. 2013;11: 76 – 83.

Jayadevan CM. A canonical correlation analysis of sectoral composition of GDP and development in Asia. Modern Economy. 2018;9:379–392.

Olakalns H. Peacock and Wiseman’s displacement hypothesis: Some new long- run evidence for the UK. Applied Economics. 2010;42:1455–1460.

Iheanacho E. The contribution of government expenditure on economic growth of Nigeria disaggregated approach. International Journal of Economics and Management Sciences. 2016;5:369.

Ram R. Government size and economic growth: A new framework and some evidence from cross-section and time-series data. American Economic Review Publishedby American Economic Association. 1986;76:191–203.

Bağdigen M, Çetintaş H. Causality between public expenditure and economic

growth: The Turkish case. Journal of Economics and Social Research. 2003;6 (1):53-72.

Fajingbesi AA, Odusola AF. Public expenditure and growth. A paper presented at A training programme on fiscal policv planning management in Nigeria, Organized by NCEMA, Ibadan, Oyo State. 1999;137-179.

Kotásková SK, Petr PP, Luboš SL, Mansoor M, Elena KE, Markéta KM, Vladimír H. The impact of education on economic growth: The case of India. Acta Universitatis Agriculturae Et Silviculturae. Mendelianae Brunensis. 2018;66(1):253– 262.

Ogiogio G. Government expenditure and economic growth in Nigeria. Journal of Economic Management. 1995;2:77-92.

Ighodaro CAU, Okiakhi DE. Does the relationship between government expenditure and economic growth follow Wagner's Law in Nigeria? Annals of University of Petrosani Economics. 2010; 2:185-198.

Okoro AS. Government spending and economic growth in Nigeria (1980-2011). Global Journal of Management and Business Research Economics and Commerce. 2013;5:20-30.

Chude NP, Chude DI. Impact of government expenditure on economic growth in Nigeria. International Journal of Business and Management Review. 2013; 1(4):64–71.

Ebiringa OT, Charlse ANB. Impact of government sectorial expenditure on economic growth of Nigeria. International Journal of Economic Research. 2012;3:82 – 92.

Barro RJ. Government spending in a simple model of endogenous growth. The Journal of Political Economy. 1990;5:103– 125.

Loizides J, Vamvoukas G. Government expenditure and economic growth: Evidence from trivariate causality testing. Journal of Applied Economics. 2005;8(1): 125–152.

Okere PA, Uzowuru LN, Amako JC. International Journal of Economics and Financial Management. 2019;4(2):30–41.

Obi CU, Ekesiobi SC, Dimnwobi SK, Mgbemena EM. Government education spending and education outcome in Nigeria. International Journal of Economics, Finance and Management Sciences. 2016;4(4):223–234.

Ojewumi Oladimeji. Effect of public spending on the growth of educational sector in Nigeria. JORIND. 2016;14(2).

Udoffia D, Godson JR. The impact of federal government expenditure on economic growth in Nigeria. Greener Journal of Social Sciences. 2016;6(4):92– 105.

Thompson B. A primer on logic and use of canonical correlation analysis. Measurement and Evaluation in Counseling and Development. 1991;24(2): 80–95.

Fan X. Canonical correlation analysis and structural equation modeling: What do they have in Common? Structural Equation Modeling. 1997;4:65–79.