Government Capital Expenditure Research Articles

Agricultural Financing and Agricultural Output in Nigeria: An ARDL Approach

This study analyzes the impact of agricultural financing on agricultural output in Nigeria from 1991 to 2022. Employing an Autoregressive Distributed Lag (ARDL) model, the research examines the effects of government capital expenditure, commercial bank credit schemes, and the agricultural credit guarantee scheme (ACGS) on agricultural output. The findings indicate that both government capital expenditure and ACGS positively and significantly influence agricultural output in both the short and long run. Commercial bank credit schemes also have a positive and significant impact, although some studies report this effect as positive but not statistically significant. The study highlights the crucial role of financial support in boosting agricultural productivity and offers policy recommendations to improve agricultural financing mechanisms. These include increasing government investment, enhancing credit schemes, and strengthening the ACGS to ensure sustainable agricultural growth and economic development in Nigeria.

Analisis Pengaruh Investasi Penanaman Modal Asing (PMA), Penanaman Modal Dalam Negeri (PMDN), Belanja Modal, dan Tenaga Kerja Terhadap Produk Domestik Regional Bruto di Kabupaten/Kota Provinsi NTB Tahun 2018-2022

This study aims to analyze the effect of foreign investment, domestic investment, local government capital expenditure, and labor on district/city GRDP in NTB Province in 2018-2022, and This study will also analyze which variables have the highest effect on the GRDP value. This study is a study that uses quantitative descriptive methods using data panel data analysis tools using EViews software 10. The results of this study indicate that foreign investment variables and domestic investment variables partially have a positive and significant effect on the GRDP variable, while the capital expenditure variable and labor variables have a positive but not significant influence. As for simultaneously the independent variables of foreign investment, domestic investment, capital expenditure, and labor simultaneously have a significant effect and for the highest variables on GRDP is a foreign investment variables.

Addressing brain drain and strengthening governance for advancing government readiness in artificial intelligence (AI)

PurposeThis study aims to investigate the impact of brain drain on government AI readiness in EU member countries, considering the distinctive governance characteristics, macroeconomic conditions and varying levels of ICT specialists.Design/methodology/approachThe research employs a dynamic panel data model using the System Generalized Method of Moments (GMM) to analyze the relationship between brain drain and government AI readiness from 2018 to 2022. The study incorporates various control variables such as GDP per capita growth, government expenditure growth, employed ICT specialists and several governance indicators.FindingsThe results indicate that brain drain negatively affects government AI readiness. Additionally, the presence of ICT specialists, robust governance structures and positive macroeconomic indicators such as GDP per capita growth and government expenditure growth positively influence AI readiness.Research limitations/implicationsMajor limitations include the focus on a specific region of countries and the relatively short period analyzed. Future research could extend the analysis with more comprehensive datasets and consider additional variables that might influence AI readiness, such as the integration of AI with emerging quantum computing technologies and the impact of governance reforms and international collaborations on AI readiness.Practical implicationsThe theoretical value of this study lies in providing a nuanced understanding of how brain drain impacts government AI readiness, emphasizing the critical roles of skilled human capital, effective governance and macroeconomic factors in enhancing AI capabilities, thereby filling a significant gap in the existing literature.Originality/valueThis research fills a significant gap in the existing literature by providing a comprehensive analysis of the interaction between brain drain and government AI readiness. It uses control variables such as ICT specialists, governance structures and macroeconomic factors within the context of the European Union. It offers novel insights for policymakers to enhance AI readiness through targeted interventions addressing brain drain and fostering a supportive environment for AI innovation.

Government Capital Expenditure and the Manufacturing Sector’s Output Performance in Kenya

Government Capital Expenditure and the Manufacturing Sector’s Output Performance in Kenya

Pengaruh PAD, DAU, DBH, dan Belanja Modal terhadap PDRB dan Kemiskinan di Kabupaten Sidoarjo

The purpose of this study is to determine the impact of Regional Own Generated Funds (PAD), General Allocation Funds (DAU), Revenue Sharing Funds (DBH), and local government capital expenditures on economic growth (PDRB) and poverty levels in Sidoarjo Regency. This research utilizes multiple linear regression analysis method through SPSS software version 25 in data processing. The PAD, DAU, DBH, capital expenditure, GRDP, and poverty data used in this study are taken within period of 2014 to 2020. The results of the study showed that PAD, DAU, DBH, and capital expenditure together did not have a significant effect in increasing economic growth. However, partially, PAD has a significant positive impact on economic growth while DAU, DBH, and capital expenditures have no significant effect even though they affect GRDP growth. In the poverty model, the results show that PAD, DAU, DBH, and local government capital expenditures, either simultaneously or partially, do not have a significant impact in reducing poverty levels in Sidoarjo Regency.

Association of human capital development and women's employment in China, 1990-2020: An empirical assessment.

This study was designed to assess the connection between human capital development and the employment of women in China from 1990 to 2020. Data was collected from the World Development Indicators, after which it was subjected to Dynamic Ordinary Least Squares and Granger causality econometric analysis. The results from the study showed that human capital development and women employment had a negative but insignificant relationship. Similarly, a unidirectional relationship existed between female employment and government capital expenditure in China, while a bidirectional association ran between women employment and government expenditure on education in the country. Therefore, it is concluded that human capital development and government expenditure on education are the strong motivating factors that drive GDP growth rate and women employment in China. Consequently, we recommend that policymakers in China should consider massive investment in human capital development in order to enhance women employment in the country. Additionally, policymakers should embark on policies and programmes that foster the expansion of China`s GDP growth rate as a measure to increase employment opportunities for women.

IMPACT OF COMMERCIAL BANK’S CREDIT ON MANUFACTURING SECTOR OUTPUT IN NIGERIA

<p>This study examines the impact of commercial banks' credit (CBC) on manufacturing sector output (MSO) in Nigeria from 1992 to 2021 using Ex-Post Factor Research Design Approach. The study’s findings indicate that commercial banks credit (CBC) has a beneficial and substantial impact on manufacturing sector output (MSO). The long-term value of CBC has a positive and substantial impact on MSO. A 1% rise in Credit to Small and Medium Businesses (CSM) led to a 0.1866% increase in MSO. Conversely, a unit increase in deposit interest rate (DINR) resulted in a 0.0081% fall in MSO. In the long run, a unit increase in Government Capital Expenditure (GOV) caused a 0.1482% increase in MSO. Therefore, the study recommends that using its monetary policies, federal government can make an efficient policy that allows the manufacturing sector and small and medium enterprises to access bank credit at low interest rates.</p>

Assessing Fiscal Policies’ Impact on Economic Recovery in African Nations Amid Financial and Pandemic Crises

This study investigates the impact of government fiscal policies on economic recovery in African nations amidst financial and pandemic crises. Through regression analysis and empirical evidence synthesis, it explores the dynamics of taxation revenue, non-taxation revenue, and government capital formation expenditure in driving resilience and growth. The findings underscore the critical role of effective fiscal policies in navigating crises, highlighting the need for evidence-based strategies to enhance economic recovery and development. Theoretical underpinnings rooted in Keynesian Economic Theory provide a robust framework for understanding the efficacy of fiscal interventions in fostering sustainable growth. The study contributes to theoretical refinement and offers practical insights for policymakers seeking to formulate adaptive fiscal strategies tailored to the unique socio-economic dynamics of African countries. Recommendations include prioritizing revenue generation strategies, enhancing tax compliance, optimizing non-tax revenue sources, and strategic investments in capital formation to foster long-term growth and resilience.

Liquidity Crunches in the Banking Industry of Nepal

Liquidity crunches in the Nepalese banking sector have been a critical issue for the last few years. This research aims to examine the causes, consequences, and improvement of liquidity crunches in the context of the Nepalese banking industry. This study is based on primary sources with explanatory and descriptive research design. The study population is all the bankers and experts involved in the banking sector - commercial banks, development banks, and regulatory authorities of Pokhara Metropolitan City, Kaski, Nepal. The five-point Likert scale questionnaires were developed to collect the data from the 213 banking professionals based on the non-probability sampling method. This study found a significant impact of government capital expenditure, bank lending policy, and monetary policy on liquidity crunches in the banking industry. The liquidity crunch hampers the growth of business and industry, and discourages entrepreneurs because they are not getting loanable funds as and when required. It creates instability in the financial system, deteriorates the investment environment, generates high inflation and unemployment rates , and affects economic growth rate in the country. The government should increase capital expenditure capacity. Bank lending policy should be directed towards a productive investment. Appropriate monetary policy should be designed to address the liquidity crunch problem in the banking sector. For this, the government and regulatory authority may promote an inclusive and sound financial system in the nation.

Asymmetric effects of long-term war on human resource development in Af…ghanistan: evidence from NARDL approach

This study explores the effects of war on human resource development in Afghanistan using non-linear autoregressive distributed lags (NARDL) and asymmetric causality analysis. The results of the NARDL bound test support an asymmetric long-run relationship between predictors. It reveals that positive and negative shocks from the per capita cost of war, child mortality rate, and population growth rate asymmetrically affect the school enrollment rate in both the short and long runs. Furthermore, it shows that positive shocks from per capita GDP and per capita government expenditures on education increase the school enrollment rate, while their negative shocks have adverse effects, in both the short and long runs. This implies that school enrollment is highly sensitive to changes in the per capita cost of war and reacts swiftly. Moreover, the results reveal significant causality from both the positive and negative components of the per capita cost of war, per capita GDP, per capita government expenditures on education, and population growth to both the positive and negative components of the school enrollment rate. However, there is only a causal nexus from the negative component of the child mortality rate to the school enrollment rate. Based on these findings, relevant policy implications are discussed.

Reducing the Antigen Prevalence Target Threshold for Stopping and Restarting Mass Drug Administration for Lymphatic Filariasis Elimination: A Model-Based Cost-effectiveness Simulation in Tanzania, India and Haiti.

The Global Programme to Eliminate Lymphatic Filariasis (GPELF) aims to reduce and maintain infection levels through mass drug administration (MDA), but there is evidence of ongoing transmission after MDA in areas where Culex mosquitoes are the main transmission vector, suggesting that a more stringent criterion is required for MDA decision making in these settings. We use a transmission model to investigate how a lower prevalence threshold (<1% antigenemia [Ag] prevalence compared with <2% Ag prevalence) for MDA decision making would affect the probability of local elimination, health outcomes, the number of MDA rounds, including restarts, and program costs associated with MDA and surveys across different scenarios. To determine the cost-effectiveness of switching to a lower threshold, we simulated 65% and 80% MDA coverage of the total population for different willingness to pay per disability-adjusted life-year averted for India ($446.07), Tanzania ($389.83), and Haiti ($219.84). Our results suggest that with a lower Ag threshold, there is a small proportion of simulations where extra rounds are required to reach the target, but this also reduces the need to restart MDA later in the program. For 80% coverage, the lower threshold is cost-effective across all baseline prevalences for India, Tanzania, and Haiti. For 65% MDA coverage, the lower threshold is not cost-effective due to additional MDA rounds, although it increases the probability of local elimination. Valuing the benefits of elimination to align with the GPELF goals, we find that a willingness to pay per capita government expenditure of approximately $1000-$4000 for 1% increase in the probability of local elimination would be required to make a lower threshold cost-effective. Lower Ag thresholds for stopping MDAs generally mean a higher probability of local elimination, reducing long-term costs and health impacts. However, they may also lead to an increased number of MDA rounds required to reach the lower threshold and, therefore, increased short-term costs. Collectively, our analyses highlight that lower target Ag thresholds have the potential to assist programs in achieving lymphatic filariasis goals.

Nexus between Inflation, Economic Growth and Government Expenditure of Nepal

In the context of Nepal, this study will explore the relationship between the rate of inflation, economic growth, and government spending. Government spending has been broken down in this analysis into three categories: government recurrent expenditure, government capital expenditure, and government financing expenditure. The time series data from 1974 to 2021 are used in the investigation. The econometrics tools used to analyze this link are the Granger-causality test, ARDL, Johansen co-integration, and the Augmented Dickey- Fuller (ADF) unit root test. The outcomes of using these econometric techniques reveal a long-term relationship between the rate of inflation, economic growth, and government spending, which indicates that public spending has beneficial externalities and links. In the short run, government spending has a greater impact on economic growth than the rate of inflation. The results of the causality test indicate that there is a one-way causal relationship between the rate of inflation and both economic growth and government spending.

Pengaruh Dana Alokasi Umum, Dana Alokasi Khusus, Dan Pendapatan Asli Daerah Terhadap Pengalokasian Belanja Modal Kabupaten Bungo Tahun 2016 – 2021

This study aims to examine the effect of the General Allocation Fund (DAU), Special Allocation Fund (DAK, and Regional Original Revenue (PAD) on Bungo Regency local government capital expenditure allocation for 2016-2021. The subject of this study is the Bungo Regency government, and the object of this study is the General Allocation Fund (DAU), Special Allocation Fund (DAK), Local Original Revenue (PAD), and Capital Expenditure Allocation. The type of data collected is quantitative data sourced from Budget Realization Reports and documents. The method used in this study is the Multiple Linear Regression test. The results showed that the General Allocation Fund (DAU), Special Allocation Fund (DAK), and Regional Original Revenue (PAD) together have a significant effect on the Capital Expenditure Allocation in Bungo Regency. Keywords: general allocation fund, special allocation fund, local original revenue.

Do natural resources invite terrorism: evidence from resource-rich region

PurposeThe MENA region is very rich in terms of natural resources. At the same time, the MENA region has also been a victim of terrorism during the last few years. This study is an attempt to investigate whether there is any relationship between natural resources and terrorism in the MENA region.Design/methodology/approachWe have focused on 15 resource-rich countries located in the MENA region for the period 2002–2019. We have applied appropriate econometric techniques and have also controlled for other dominant determinants of terrorism while studying the relationship between these two variables.FindingsThe results provide solid evidence in favor of the hypothesis that natural resources encourage terrorism. We find that natural resources have positively impacted terrorism. Besides, the natural resources, other factors such as per capita GDP, trade openness, political stability, domestic investment and government expenditures have negatively impacted terrorism. Moreover, the findings suggest that FDI and corruption are irrelevant in explaining terrorism while the findings regarding employment level and terrorism are unexpected. The obtained results are robust to alternative estimating methodologies.Practical implicationsThe results have serious policy implications for the MENA region. The MENA region in general is suggested to devise appropriate policies regarding their huge natural resources so as to tackle the terrorism problem effectively. Similarly, paying favorable attention to trade liberalization, political stability, government expenditures, investment, rising income of the population in the presence of macroeconomic stability in the form of lower inflation would also help the MENA region to eradicate the problem of terrorism.Originality/valueThe available literature has largely ignored the role of natural resources in explaining the problem of terrorism. Therefore, this study has provided relatively new evidence regarding the determinants of terrorism.

Empirical Analysis of The Growth Effects of International Trade in Nigeria

This role of foreign trade in driving growth in the domestic economy and boosting the potential of a country to foreign exchange earnings has remained a subject of interest in economic literature, thus provoking investigation into the claim that international trade is growth-enhancing. This study centred on the impact of foreign trade on economic growth. The specific objectives of this study are to explore the effects of net export, exchange rate and government capital expenditure on economic growth. This study covered a period of 35 years (1980-2015) and the source of data for the variables is the Central Bank of Nigeria Statistical Bulletin. The error correction model (ECM) was utilized as a technique for data analysis. The Phillips-Perron unit root test shows that the variables are stationary upon first differencing. Thus, the series are integrated of order zero. The Johansen cointegration test result indicates that the variables are cointegrated. Therefore, this reveals that the variables have a long-run relationship. The cointegrating regression result shows that net export has a significant positive impact on economic growth. The exchange rate on the other hand is found to significantly and negatively influence economic growth. The long-run impact of government capital expenditure on economic growth is negative and insignificant. The Wald test for coefficient restrictions shows that net export, exchange rate and government capital expenditure are statistically significant in explaining changes in economic growth. Based on the findings, it is recommended that government should adopt trade policies that promote export and reduce the incidence of importing competing goods to ensure that Nigeria optimizes the benefits that foreign trade creates.

Impact of Transport and Communication Capital Expenditure on Economic Growth in Nigeria, 1986-2022

One of the major impediments to the improvement of the transport and communication sector is inadequate capital spending. Despite the readiness of the government to upgrade the critical infrastructures, there still exist huge infrastructural deficits in Nigeria. Based on these, this study examines the impact of government capital expenditure on transport and communication on economic growth in Nigeria between 1986 and 2021. The study employed autoregressive distributed lag model as the method of analysis and the result reveals that in the long run, government capital expenditure on transport and communication (CEXTRC) with a coefficient value of 0.019, commercial banks’ credit to the transport and communication sector (CBCTRC) with a value of 0.025 and government revenue (GOVR) with a value of 0.065 have positive and significant impact on economic growth in Nigeria. The results also reveal that the inflation rate (INFR) with value of -0.16 has a negative and insignificant impact on economic growth in Nigeria. The short run result found that CEXTRC with value of 0.02, CBCTRC with a value of 0.04, GOVR with a value of 0.21 all have positive and significant impact on economic growth. INFR however shows a negative impact with a coefficient value of -0.28. The study therefore recommends that the government should prioritize the transport and communication sector by allocating more funds in order to provide good transport and communication systems such as railways, roads, waterways, internet, highways and so on. These would help to reduce costs of production, improve better accessibility to markets, create businesses and employment opportunities which will have a multiplier effect on economic growth, by enhancing it.

Nigeria Economic Growth and Government Capital Expenditure, 1981- 2020

This study examined government expenditure effect on Nigeria’seconomic growth between 1981 and 2020, using ARDL model.The data obtained were secondary sources, CBN StatisticalBulletin, NBS and World Bank database. The dependent variableof the study is Gross Domestic Product (GDP), proxy as economicgrowth, while Capital Expenditure on Agriculture (AGEX),Capital Expenditure on Manufacturing, Mining and Quarrying(MGEX), were the independent variables. The results of thefindings reveal that both AGEX and MGEX have positiverelationship with GDP and at the 5% significant level, arestatistically significant. The study therefore recommends that sincespending in the areas of infrastructural facilities is a gooddeterminant of output growth, government should ensure that basicinfrastructural facilities needed in these sectors (agriculture andmanufacturing, mining and quarrying) such as good roads, storagefacilities stable electricity and so on, are provided.

Analisis Hubungan Pertumbuhan Ekonomi dengan Kemiskinan dan Belanja Modal Pemerintah Daerah, Penyerapan Tenaga Kerja, dan Indeks Pembangunan Manusia

Purpose: This study examines the effects of local governments’ capital expenditures, labor absorption, and the Human Development Index on economic growth and poverty in 35 districts/cities in Central North Sumatra. Methodology/Approach: Quantitative research was used in this study. The secondary data were used by the researchers. Capital expenditures of local governments, labor absorption, and the Human Development Index are exogenous variables, while economic growth and poverty level are endogenous variables. Results: The results showed that the four proposed hypotheses were accepted, and the hypothesis was rejected. Limitations: Ownership structure and ownership have no relationship with debt policies. Contributions: Nasution et al. (2023) The results showed that the four proposed hypotheses were accepted and the hypothesis was rejected. Hypothesis 1 suggests that local government capital expenditures have a significantly positive effect on economic growth. Hypothesis 2 suggests that labor absorption has a significantly positive effect on economic growth. Hypothesis 3 suggests that the Human has a significantly positive effect on economic growth. Hypothesis 4 suggests that economic growth has no significant effect on poverty. Hypothesis 5 suggests that the Human Development Index has a significantly negative effect on poverty.Index is a significantly negative effect on poverty.

Analisis Pengaruh Dana Bagi Hasil, Pendapatan Asli Daerah, Dana Alokasi Umum, dan Dana Aloksi Khusus terhadap Belanja Modal dengan Pertumbuhan Ekonomi Sebagai Variabel Moderating di Jawa Tengah Tahun 2019-2021

The aims of this research was to analysis the impact of economic growth on Central Java Provincial Government's capital expenditures in 2019–2021. This included looking at the impact of revenue sharing funds, money collected at the regional level, as well as federal, state, and local allocations. Data and statistics were collected from the country's centrally located Bureau of Statistics and Ministry of Finance. Saturation sampling was used in the demographic and sample approach to collect data from all 35 cities and districts in Central Java Province (6 cities and 29 districts). According to the data, revenue splits and investment spending are unrelated (p=0.721), local own-source revenue (p=0.000), public allocation funds (p=0.001), and special allocation funds (p=0.032). The significance value for the effect of economic growth on capital expenditure was 0.196, meaning it had no effect on this variable. However, the effect of local revenue on capital expenditure was moderated by economic growth (p = 0.001), and the impact of general allocation funds on capital expenditure was moderated by economic growth (p = 0.048)

Fiscal Policy and Unemployment Nexus in Nigeria: An Empirical Analysis (1990–2021)

ABSTRACT: This study assessed the fiscal policy and unemployment nexus in Nigeria using time series data covering 1990 to 2021. Economic downturn, poor living standard, inadequate employment generation and increasing unemployment rate are sources of concern and worry. Job creation seems not to be getting the needed attention in the scheme of economic policies in Nigeria. The proxies for fiscal policy were: government capital expenditure (GCE), government revenue expenditure (GRE), government external debt (GED) and government total revenue (GTR), while that for unemployment was the unemployment rate. Specifically, this sought to examine the nexus between GCE and unemployment rate, GRE and unemployment rate, GED and unemployment rate, and GTR and unemployment rate. The ex-post-facto research design was used while the hypotheses were tested at 5% significance level. The time series data obtained from the Central Bank of Nigeria statistical bulletin was analyzed using the OLS technique. The test results showed that: GCE had a coefficient of 3.84 and a probability of 0.9893; GRE had -0.000481 coefficient and a probability of 0.6365; GED had 0.000584 coefficient and a probability of 0.1292 while GTR had 0.002070 coefficient and a probability of 0.0000. The probability f-statistic value of 0.000000 showed that proxies for fiscal policy are jointly significant to the unemployment rate. The adjusted R2 and Durbin-Watson values were 86% and 1.798125 respectively. It was recommended that the federal government should: (1) apply her capital expenditure properly and direct it to sectors that will help create more jobs and reduce unemployment rate, (2) make her recurrent expenditure to be supportive of the various government infrastructures, (3) drastically reduce her growing and high debt profile without commensurate job opportunities, (4) use her revenue to drive the economy instead of being applied on non-productive, white elephant projects or misappropriated.