Public Capital Expenditure Research Articles

The Nexus between Infrastructure Development and Agricultural Growth In Nigeria

The study examined the impact of infrastructure development on agricultural growth in Nigeria during the period 1990-2022. Key variables examined include public capital expenditure on economic services (PCEES), employment in agriculture (EMPA), research and development (RD), domestic credit to the private sector (DCPS), and agricultural output. Statistical analysis using the Ordinary Least Square (OLS) technique was employed, along with the Augmented Dickey-Fuller (ADF) unit root test to ensure the stationarity of the time series data, and the Johansen cointegration test to assess the long-run relationship between the dependent and independent variables. Our results show that all variables, except research and development, were stationary at first difference. The Johansen cointegration test conclusively demonstrated the existence of a long-run relationship in two cointegrating equations. Furthermore, the results from the Ordinary Least Squares (OLS) technique reveal that public capital expenditure on economic services, domestic credit to private sectors, and research and development were found to have a positive correlation with agricultural output in Nigeria. Conversely, employment in agriculture (EMA) was identified as having a negative effect on agricultural output in the country. The study recommends increasing investment in public capital expenditures on economic services. Moreover, establishing research institutes focused on agriculture in each state can provide valuable insights and solutions to boost the sector's productivity.

Morbidity Cost and Willingness to Pay for Healthcare Insurance among Wheat Farmers in Jigawa State of Nigeria

The study determined the costs of morbidity and farmers' willingness to pay for health insurance in the Jigawa State of Nigeria using a cross-sectional data collected from 284 farmers through a multi-stage sampling technique. Using an easy-route cost approach, a well-structured questionnaire coupled with interview schedule was used for data collection. Besides, the collected data was then analysed using both descriptive and inferential statistics. Empirically, the majority of farmers utilised an accumulation strategy for livelihood sustenance, alongside enterprise diversification – which acted as a catalyst in increasing their stocks and consumption outcomes, thus smoothing their income and consumption. However, financial and, at worst, physical livelihood capitals posed challenges that affected farmers' livelihood assets in the study area. Furthermore, malaria emerged as the major health issue affecting livelihoods; consequently, slightly over half of the sampled population agreed to the notion of a social health insurance scheme for a healthy livelihood. However, this inclination was largely influenced by the overlooked or nearly neglected social learning aspect of extension service delivery. Therefore, as a method to reduce public capital expenditure on healthcare for livelihoods in the study area, the study recommends that policymakers expand the healthcare scheme to include the farming community, going beyond formal organisations, thereby enhancing farm family livelihoods specifically and overall economic growth and development in general. Nonetheless, enhance institutional factors, alongside social extension, financial and infrastructural facilities are recommended.

Research on Coupling Coordination of China’s Urban Resilience and Tourism Economy—Taking Yangtze River Delta City Cluster as an Example

Urban resilience provides the foundation and guarantee for the tourism economy, and the development of the tourism industry provides new opportunities and impetus for urban resilience. The coordinated development of urban resilience (UR) and the tourism economy (TE) contributes to the high-quality development of the regional economy. This study takes 27 cities in the Yangtze River Delta (YRD) urban agglomeration as an example. Various analytical techniques, including the entropy method, coupling coordination degree model (CCDM), kernel density estimation, Theil index, and obstacle degree model, are employed to investigate the spatiotemporal evolution patterns and influencing factors that affect the coupling coordination degree (CCD) between UR and TE. The findings indicate that: (1) The urban resilience and tourism economy exhibited an increasing trend denoted by “N” and “M”, respectively. (2) The coupling coordination level has undergone a development phase of “Moderate disorder–Bare coordination–Moderate disorder”. (3) The level of coordination has been enhanced, with intra-regional differences identified as the primary source of variation. (4) The number of Internet users, the number of students in institutions of higher learning, per capita public financial expenditure, science and technology expenditures as a share of fiscal expenditures, urban per capita disposable income, foreign exchange earnings from tourism, and the number of inbound tourists is the main factors affecting the CCD of urban resilience and tourism economy.

Pattern of Public Healthcare Expenditure and Preparedness for COVID-19 in India: An Interstate Analysis

The present study made an attempt to examine the changing pattern of public healthcare expenditure across Indian states for the period 1979–1980 to 2019–2020 and tried to relate this with the spread and mortality of COVID-19 infected cases. An attempt was also made to analyse the responsiveness of per capita public healthcare expenditure (PCPHE) with the change in per capita GSDP (PCGSDP) to a much-disaggregated level. The supply side composite index (SSCI), panel regression and panel generalised method of moments (GMM) was used for analytical purpose. The study found that the greater variation in PCPHE across Indian states start exhibiting since the early years of initiation of NRHM policy and continued till recent years. Unlike the PCPHE, the public healthcare expenditure to GSDP ratio declined for all states in the subsequent time periods. The value of SSCI for both revenue and capital expenditure was low in states having larger populations and geographical areas. The study argued that the average PCPHE across Indian states exhibited irregular pattern of association with the COVID-19 confirmed cases, positivity and death rate. The panel GMM estimate of PCPHE exhibited an inelastic relationship with PCGSDP implying public healthcare is a ‘necessity’ across the Indian states.

Impact of Renewable Energy Consumption and Public Capital Expenditure on Poverty Reduction in Nigeria

Poverty has been an important issue of discussion in underdeveloped countries and has been of crucial concern to many stakeholders across the globe. This article examines the extent to which renewable energy consumption and public capital expenditure impact the poverty rate in Nigeria over the period 2003 - 2019. We employed cointegration and Autoregressive Distributed Lag (ARDL) bounds model for our analysis. Our results revealed that renewable energy consumption significantly escalates poverty in the short run. Public capital expenditure, economic growth, and governance quality substantially reduce Nigeria's poverty. The long-run analysis reveals that renewable energy consumption significantly elevates Nigeria's poverty rate in the long run. Moreso, economic growth and quality of governance reduce the poverty rate substantially, whereas public capital expenditure does not significantly reduce the poverty rate in Nigeria in the long run. The Nigerian government was recommended to adopt modern renewable sources through a public-private partnership and promote good governance, especially in the efficient and appropriate implementation of public capital expenditures.

Effect of Agricultural Funding on Agricultural Output in Nigeria (1990-2020)

This study examined the effect of agricultural funding on agricultural growth in Nigeria spanning from 1990-2020. The specific objectives were to determine the effect of public capital expenditure on agricultural output in Nigeria, determine the effect of public recurrent expenditure on agricultural output in Nigeria, determine the effect of agricultural credit guarantee scheme on agricultural output in Nigeria, and the effect of Foreign Agricultural Grant on agricultural output in Nigeria. This study adopted the quasi-experimental research design. Secondary data were used in this study. Data used were gotten mainly from the publications of Central Bank of Nigeria (CBN) namely; Statistical Bulletin. The method adopted for analyzing is the Augmented Dickey Fuller test (ADF). Pre-estimation diagnostics tests were employed to check for stationarity of the data to prevent spurious regression analysis. From the regression result, it could be seen that only agricultural credit guaranteed scheme fund (ACGSF) was significant in influencing agricultural output in the period under study (1990-2020) as the probability values of its t-statistics were less than 5%, while public capital expenditure on agriculture (PCEXA), Foreign agricultural grant (FAG) and public recurrent expenditure on agriculture (PREXA) did not have any significant influence on agricultural output as the probability values of their t-statistics were greater than 5%. From the result, ACGSF had a positive and significant effect on agricultural output, meaning that a one-unit increase in funding to the ACGSF brought about (0.357068), this might be due to the ACGSF disbursed directly to farmers therefore its positive influence on agriculture output. On the contrary, FAG, PCEXA and PREXA had no significant effect on agricultural output within the period under study, this might be because these funds were not used for the purposes which were earmarked for. The study concluded that foreign agr

Contradiction or harmony? Spatial and temporal relationships between new urbanization and rural revitalization in the Yellow River Basin from a coupling perspective.

Integrating urban and rural areas is the only way to achieve sustainable regional development. To comprehensively build an evaluation index system for new urbanization and rural revitalization (NU-RR), taking the Yellow River Basin (YRB) as research object, and the coupled coordination degree (CCD) model, relative development degree (RDD) model and gravity model are used to quantitatively measure the spatial and temporal patterns, synchronous development status and spatial linkages of the coupled coordination of NU-RR from 2005 to 2020. The factors influencing the CCD are identified with the help of the geographic detector model. The findings indicate that: (1) From 2005 to 2020, the combined indexes of NU-RR in the YRB show an increasing trend, while rural revitalization is growing slower than new urbanization. (2) The CCD of NU-RR in the YRB shows spatial structure characterized by "high in the east and low in the west" and undergoes an evolutionary process of "low coupling-medium coupling-high coupling". (3) The spatial disparities in the state of coupled and coordinated development of different cities are significant, mainly showing the spatial distribution characteristics dominated by the lagging new urbanization. (4) The spatial connection of CCD is networked and polarized, and the interprovincial barrier effect is weakened. (5) Total retail sales of consumer goods per capita and local general public budget expenditure as a share of GDP are the primary influencing elements affecting the CCD of NU-RR in the YRB. The interaction is manifested as bivariate enhance and nonlinear enhancement. The study's findings can guide decisions to promote high-quality urban-rural integration development in the YRB.

Investment in water, sewage and waste disposal in Norwegian local governments

PurposeDescribe the trends in investments in the water, sewage and waste disposal sector (WSD) in Norwegian local governments and search for determinants that can explain variations in investment levels across local governments. The water, sewage and WSD is the second most important sector in Norwegian local governments in terms of the share of total investments and is subject to much debate due to aging pipelines in many communities. However, as pipelines are hidden in the ground, this is also a sector that can easily be forgotten until an actual failure in the system occurs.Design/methodology/approachThe authors analyze a large data set of all Norwegian local governments in the period 2003–2018 using descriptive statistics and regression techniques.FindingsThe investment levels are driven by need, in terms of expectations of a growing population, and fiscal capacity. Hence, the authors conclude that the investment decisions seem to be mostly based on reasonably rational evaluations of the local governments' future needs and capacity to pay for investments.Originality/valueThe paper contributes to the literature on determinants of public capital expenditures. An important part of this debate is whether differences in expenditure levels reflect rational decisions based on changes in need and fiscal capacity or shortsighted policy decisions.

Relationship between Public Expenditure and Economic Development in Sub- Saharan Africa Countries: The VECM

This study examined the relationship between public expenditure and economic development in Sub-Saharan African nations using time series data from 1970 to 2021. The study employed the Vector Error Correction Model (VECM) and Granger Causality approaches, leveraging variables such as real GDP per capita and aggregate public expenditure. The short and long run outcomes show that government expenditure has a negative impact on economic development. In addition, the study's causality test reveals a bidirectional link between economic success and government spending. The call for a study pushes Tanzania's government to enhance its priorities while reinforcing programs such as cost-cutting and fiscal consolidation. It also underlines the need of government expenditure on development projects that are initiated and completed on time to minimize cost escalation

Relation Between Per Capita Public Expenditure on Health and Income in India at Sub-National Level

Health is considered as both a source of human welfare and a detriment to overall economic growth. The relationship between public health expenditure and economic growth is an important subject of analysis that has been in debate for years. The major concern is whether income of a nation plays a significant role in the changes happening in government health spending. In order to answer this particular question, the present study investigates the relationships between public health expenditure and income in selected 23 Indian states based on the availability of data. Variables used for the study were per capita public health expenditure, per capita state gross domestic product, per capita state’s own revenue and infant mortality rate for a period of 30 years from 1990 to 2020. For the purpose of analysis, the states were divided into economically less developed and economically developed based on the revenue earned by the selected Indian states. The analysis begins with summary statistics and pair-wise correlation followed by ordinary least squares regression. The findings of the study suggest that there was a significant positive impact of per capita gross state domestic product, fiscal capacity on per capita public health expenditure, and a negative impact of infant mortality rate on per capita public health expenditure in all the 23 Indian states. And the impact of per capita state gross domestic product on per capita public health expenditure is higher in richer Indian states than poorer Indian states.

Responsiveness of the Construction Sector to Fiscal Policy in Nigeria

The influence of fiscal policy measures on the economy is reflective of sectorial outputs like the construction sector industry. However, the extent of the influence in countries such as Nigeria is vague, making their interaction a concern. This study investigated and examined the relationship between the construction sector and selected fiscal policy measures, namely government revenue, public capital expenditure, gross fixed capital formation and deficit finance. Using time series, data of the study variables between 1980 and 2019 were analysed using cointegration estimation and pairwise casualty techniques. The study’s findings showed that there were long-term and short-term relationships between all variables, but they were not significant, except for the government revenue. Similarly, the pairwise Granger causality test confirmed that deficit financing and public capital expenditure had no casualty effect on the construction sector. It is concluded that the construction sector is not responsive to changes in fiscal policies in Nigeria. Subsequently, the study recommends the need for increased public and private capital investment, improvement in revenue generation and efficient use of debt revenue on infrastructure development to strengthen domestic growth across economic sectors.

Impact of “expanding powers and strengthening counties” reform on basic public education services: Empirical evidence from Sichuan, China

The quality of a country's education system is both an indicator of its present level of development and a predictor of future economic advancement. This study intended to explore the impact of the “expanding power and strengthening counties” reform on the supply of basic public education resources. A combination of qualitative and quantitative methods was used to analyze the panel data of 114 counties in Sichuan Province from 2005 to 2017, including 78 counties with expanded powers. The study found that the “expanded power strong counties (EPSC)" had a significant positive impact on the supply level of funding resources measured by per capita public education expenditure. The time effect of the EPSC on the supply of teacher resources for county public education was manifested as a sharp increase in the supply level in the three years before the reform. The supply level tended to be stable after four years of reform. The economic resources supply level was relatively stable in the first three years and rose sharply after four years. There was a downward trend after the reform for 8 years. The structural effect has shown a more significant incentive effect on the supply of public education resources to strong and weak counties. But compared with the weak counties with lower economic development levels, the strong counties with higher economic development levels have a more noticeable effect of their decentralization reform on improving the supply level of public education resources.

Interest rates affect public expenditure growth

<abstract> <p>The aim of this paper is to analyze interest rates and public spending to provide policy implications. Concretely, it explores the influence of these rates on public expenditure growth as opposite to the traditional direction view, dealing with 216 countries for the 1972–2021 period and estimating system GMM models. A balanced subsample is used for assessing Granger causality through a recent panel technique. The results are robust for the used dependent and target variables and also the methodology. They show that decreasing interest rates are associated with—and in some cases also lead to—lower per capita public expenditure growth. These results can be interpreted as a twofold effect of shifts in relative prices—through fiscal illusion—and of crowding out of private investment with respect to the public sector.</p> </abstract>

Convergence Analysis of Social Sector Expenditure and its Components: Evidence from the Indian States

ABSTRACT This paper examines the convergence of public expenditure and its major components using sub-national data from India. By employing the panel club convergence test, the paper finds convergence in per capita public expenditure across Indian states implying that distribution policies of public expenditure are effective and fair across the states. Subsequently, the convergence of per capita total social sector expenditure and its major components are studied. The results support the evidence of convergence for total social sector expenditures and in the case of its components, we find that six of the nine components display regional convergence. Three components, namely, per capita education, sports, art and culture expenditure; per capita social security and welfare expenditure; and per capita rural development expenditure display the evidence of divergence and the presence of multiple transition paths. From the policy perspective, these three components of social expenditures need greater attention by the state governments as these expenditures are important for social cohesion, sustainable development, and achieving millennium development goals.

Study on Spatial–Temporal Evolution Characteristics and Restrictive Factors of Urban–Rural Integration in Northeast China from 2000 to 2019

With the rapid development of urbanization and the widening gap between urban and rural areas, how to effectively enhance the balanced development of urban and rural areas as well as promote the integrated development of urban and rural areas have become heated topics. Based on the basic theory of urban–rural integration and spatial balance, this paper establishes a comprehensive evaluation system. Using a coupling coordination model and an obstacle degree model, this paper selects 32 indicators from aspects of economy, society and ecology to measure the development level of urban–rural integration in 34 prefecture-level cities in Northeast China from 2000 to 2019. We also analyze the spatial pattern, evolution type characteristics and obstacle factors of urban–rural relations. The results show that: (1) The growth rate of urban development in Northeast China is higher than that of rural development. Except for rural ecology, all dimensions of urban and rural areas have increased year by year, but there are large spatial differences within the region. (2) The urban–rural integration development level of Northeast China is growing constantly and the types of urban and rural coordination are all rising to a higher level. Areas with high urban–rural coordination levels are concentrated in the Harbin–Changchun urban agglomeration and the central and southern Liaoning urban agglomeration, with obvious agglomeration effects. (3) In the coordinated development of urban and rural areas, the restrictive degree of the rural social subsystem was higher than that of the urban subsystem. The restrictive factors in the coordinated development of urban and rural areas are relatively stable, and include per capita consumption expenditure, per capita public budget expenditure, books in public libraries per thousand people, etc. (4) The functions of rural social elements should be enhanced, and the social urban–rural integrated development mechanism should be established to promote the integrated development of urban and rural society.

Does public capital expenditure reduce energy poverty? Evidence from Nigeria

PurposeGiven the ever-growing fiscal commitments of Nigeria and her chequered history of electricity generation and distribution, the fortunes of the energy sector in the country have been affected by the prevalence of energy poverty. Government policies such as public capital expenditure (PCE) present a crucial option for reducing energy poverty in Nigeria, providing the purpose of this study.Design/methodology/approachTo investigate the relationship between government capital spending and five distinct energy poverty proxies, this research applies the Bayer–Hanck cointegration system and the auto-regressive distributed lag (ARDL) bound test.FindingsThe findings indicate that public capital spending in Nigeria worsens energy poverty by reducing access to electricity, urban electrification, renewable energy consumption and renewable electricity generation, with a positive but insignificant influence on rural electrification.Originality/valueThis inquiry presents a pioneering investigation of the nexus between PCE and energy poverty in Nigeria. Also, aside from the variables of energy poverty adopted by existing studies, this study incorporates renewable energy consumption and renewable electricity output with implications for energy poverty and sustainable development.

Assessing Multiplier Effects of Public Expenditures on Economic Growth in Nepal: SVAR Model Analysis

Expansionary public expenditure is a popular important fiscal measure in the constraint of budgetary resources to achieve higher economic growth with the expectation of higher multiplier effect on productive sectors in the world. Since the actual multiplier effect contradicts with the expected multiplier effect in this discretionary fiscal practice, the goal of higher economic growth is not well achieved. In this context, the practice of public expenditure is a key concern of scholars to understand whether it is the best one or whether its multiplier effect is higher. In this context, this study is an important attempt. This paper assesses the multiplier effects of public expenditures on economic growth in Nepal, covering time series data sets of public expenditures and economic growth from 1974-75 to 2018-19 by using the structural vector auto-regressive (SVAR) model. As a result of the SVAR model, the multiplier effect of public expenditure, recurrent expenditure, and capital expenditure is positive for economic growth. In the results, the multiplier effect of recurrent expenditure is found to be more promising than capital expenditure for economic growth in the short run, but in the long run, it is lower. Similarly, the multiplier coefficient value of capital expenditure is lower in the short run. This is probably due to leakages in the economy, corruption and improper management of development funds, seasonal expenditure trends, and poor management of development projects. Thus, public expenditure is an important fiscal measure to developing economy like Nepal to create a multiplier effect through aggregate demand on national income and employment. Therefore, the government should improve the efficiency of public expenditure and the ratio of capital expenditure and private investment to improve the higher multiplier variable in the long run. The result of this paper will be a valuable input to the policymaker and the planner of Nepal to improve the efficiency of public expenditure through the implementation of a mid-term expenditure framework.

Empirical Assessment of Public Expenditure on Education and Manpower Development in Nigeria

Poor funding of the education sector and low school enrollment in Nigeria has been affecting the manpower development of the citizen. This study is an empirical assessment of public expenditure on education and manpower development in Nigeria for the period of 30 years (1990-2019). Secondary source and time series data were used and the variables such as; human development index, public capital expenditure on education, public recurrent expenditure on education, primary school enrollment, secondary school enrollment and tertiary school enrollment were employed for the study. The data were sourced from Central Bank of Nigeria (CBN) statistical bulletin of 2019 and World Bank Database. Data was analyzed using Ordinary Linear Square (OLS) techniques with the aid of E-views version 09. The various analyses that were used are unit root and regression. The findings revealed that public recurrent expenditure on education (PREE), primary school enrollment (PSE), and tertiary school enrollment (TSE) are statistically significant on the Human development index (HDI) while public capital expenditure on education (PCEE) and secondary school enrollment (SSE) are not statistically significant on the Human development index (HDI). It was concluded that if public expenditure on education if managed will improve manpower development in Nigeria. The study recommended that government should create awareness about school enrollment especially at primary

Public Expenditure and Economic Development in Nigeria

Abstract: The main objective of this study was to investigate the impact of public expenditure on economic development in Nigeria. The design adopted for this study was ex-post-facto; data used for analysis were elicited from Central Bank Statistical Bulletin and Federal Ministry of Finance. To achieve this broad objective, a model was formulated based on empirical and theoretical reviews. The model used Human Development Index (HDI) as the dependent variable while public capital expenditure, public recurrent expenditure and external borrowing were the independent variables in the model. This study employed the Fully Modified Least Squares (FMOLS) Model to analyze data.The findings elicited from this study revealed that public capital expenditure, public recurrent expenditure and external borrowing all had positive and significant impact on human development index within the scope of this study. Inferential result deduced that public expenditure had positive and significant impact on economic development in Nigeria. The study recommended that urgent need to instill fiscal discipline in government expenditures by initiating far reaching effective internal control measures and more proactive economic management coordination and implementation as well as discouraging all non-productive activities and expenditures in all tiers of government forthwith. Government recurrent expenditure should be channeled to have effects on the economy, enhancing and promoting growth and development in the process. All non- productive activities and expenditure need to be reviewed forthwith while the role of government should be reappraised with more emphasis on providing the enabling policy environment for private sector initiatives.

Impact of Public Capital Expenditure on Inflation Rate in Nigeria

This paper examines the impact of public capital expenditure on inflation rate in Nigeria. The data for the study were sourced from various issues of the Central Bank of Nigeria’s statistical bulletin. The data was subjected to unit root test using Augmented Dickey fuller (ADF) approach to ascertain the time series properties. Descriptive statistics was used to assess the socioeconomic characteristics of the variables. Due to the mixed order of integration witnessed in the unit root, ARDL- Autoregressive Distributed Lag approach was used for cointegration and regression analysis. The result found that Public capital expenditure is negatively and statistically significant (tcal = -2.903) in influencing Inflation Rate in Nigeria. This outcome is highly directional in the sense that prudent and productive spending will always subdue inflation in any economy; therefore, this study recommend that government should increase its investment in production sectors and encourage skilful and willing citizens to participate, since this would reduce the expenses being incurred on business as a result low currency value and raise the profitability of firms.