Increase In Government Expenditure Research Articles

Effect of human capital devolution process on the technical efficiency of public health facilities in Nakuru and Baringo Counties of Kenya

This study investigates how the process of human capital devolution affects the technical efficiency of public health facilities in Nakuru and Baringo Counties in Kenya. Despite the expectation that increased government expenditure would enhance efficiency, the public health sector in Kenya continues to need more efficiency. The study was guided by the Human Capital Theory. The human capital devolution process was measured by academic and professional qualification, training and conferences, research and publications, and expenditure on salaries and allowances. This study drew from the Cobb-Douglas production function theory. Employing a quantitative descriptive research design, the study targeted 3199 employees across 401 level 2-5 public health facilities, with a focused sample of 355 proportionately selected employees. Primary data was gathered using structured questionnaires coded and analysed using STATA/SPSS software. Technical efficiency was assessed using two-stage Data Envelopment Analysis (DEA) and multivariate logistic regression. The regression analysis results revealed a significant relationship between human capital and technical efficiency, with a coefficient of human capital development at 0.331 (T-value= 4.384, p-value= 0.000< 0.05 significant level). This indicates a positive impact of human capital devolution on technical efficiency, where a unit increase in human capital development leads to a 0.331 increase in technical efficiency. The study recommends that financial challenges, the unequal distribution of national resources, and poor funding of devolution services can be solved by transferring all functions earmarked to County Governments as per Schedule IV in the Constitution of Kenya, 2010.

Effect of procurement devolution process of medical supplies on the technical efficiency of public health facilities in Nakuru and Baringo Counties of Kenya

This study analysed the effect of the procurement devolution process of medical supplies on the technical efficiency of public health facilities in Nakuru and Baringo Counties of Kenya. Although increased government expenditure was expected to improve efficiency and better health outcomes, Kenya's public health sector remains inefficient. The study used a quantitative descriptive research design that targeted 3199 employees in 401 level 2-5 public health facilities (PHFs). Using Slovin’s formula, a sample size of 355 was proportionately sampled. While secondary data was obtained through desk review, primary data was collected through structured questionnaires that were administered to different cadres of employees. Primary data was coded and analysed using STATA/SPSS. To compute the technical efficiency of PHFs, the two-stage Data envelopment analysis (DEA) and multivariate logistic regression were adopted. Study findings show that devolution has improved demand for medical supplies, enhanced procurement efficiency, and promoted ethical procurement. However, complaints from patients have not been reduced, and the training of procurement personnel has not increased. Regression analysis indicates a significant relationship between human capital and technical efficiency. The coefficient of human capital development was 0.199 (T-value= 9.514, p- value= 0.000< 0.05 significant level), implying a positive effect of the procurement devolution process on technical efficiency. This study concludes that despite increased health expenditure in Kenya, public health healthcare services have deteriorated due to the inefficiency of the public health sector. This study recommends increased financial and human resource support for Kenya's public health care.

Determinant of Human Development in Nigeria

The research investigates the factors influencing human capital development (HCD) in Nigeria. Historically, the Nigerian government has overlooked the significant deterioration in both human capital development and infrastructure, which leads to decreased productivity in the country's economy. The primary goal of this study is to explore the factors influencing human capital development in Nigeria. The study investigated the patterns and trends of human capital development in Nigeria over a span of 35 years, encompassing the period from 1988 to 2022. Top of Form; examined the factors that determine human capital development in Nigeria. The time series analysis was used to investigate the effect of fertility rate, gross domestic product, inflation rate, human development index. The data utilized in this study were sourced from the World Bank database (WDI) the Central Bank of Nigeria (CBN). The study utilized descriptive measurements, which included mean, median, skewness and kurtosis; just as inferential statistics which included correlation analysis, unit root test, Autoregressive distributed lag model (ADL) and error correction estimates as the estimation tools. The study found proof of short run connection among the variables. The study further found that gross domestic product exhibits a positive effect on the Human Development Index, although this effect is found to be statistically insignificant. (t = 1.32; p = 0.206), fertility rate demonstrates a negative and statistically significant effect on the Human Development Index. (t = -1.66; p = 0.002), inflation rate has positive and significant effect on human development index (t= -0.8; p= 0.0215). This, accordingly, suggests that fertility rate and inflation rate contribute more significantly to human capital development in Nigeria. From the study it is concluded that the fertility rate and inflation rate are the variable that mostly determines human capital development in Nigeria. From the findings, the study suggests enhancing the quality of healthcare services through increased government expenditure in the health sector in other to enhance the quality of human development.

Asymmetric Effects of Economic Policy Uncertainty on Food Security in Nigeria

This study investigates the asymmetric effects of economic policy uncertainty (EPU) on food security in Nigeria, utilizing annual time series data from 1970 to 2021. The study used descriptive statistics, unit root tests, the nonlinear autoregressive distributed lag (NARDL) model and its associated Bounds tests to analyze the data. The analysis reveals that adult population, environmental degradation, exchange rate uncertainty (EXRU), financial deepening, food security (FS), government expenditure in agriculture uncertainty (GEAU), inflation, and interest rate uncertainty (INRU) exhibit positive mean values over the period, with varying degrees of volatility. Cointegration tests indicate a long-term relationship between EPU variables (GEAU, INRU, and EXRU) and food security. The study finds that cumulative positive and negative EPU variables have significant effects on food security in the short run. Specifically, negative GEAU, positive INRU, positive and negative EXRU have significant effects in the short run. In the long run, negative GEAU, positive and negative EXRU have significant effects on food security. Additionally, the research highlights asymmetric effects, showing that the influence of GEAU and EXRU on food security differs in the short- and long-run. The study underscores the importance of increased government expenditure on agriculture, control of exchange rate and interest rate uncertainty, and the reduction in economic policy uncertainty to mitigate risks in the agricultural sector and enhance food security. Recommendations include strategies to stabilize exchange rates to safeguard food supply and overall food security.

Government Expenditure on Education and Economic Growth: An Econometric Study

The increase in government expenditure on education is commonly considered to have a positive effect on economic growth by raising GDP per capita. This essay aims to examine the effectiveness of education investment in driving economic growth. The panel Ordinary Lease Square (OLS) model is used to establish a regression model with data sets for Asian least developed, developed, and developing countries from 1995 to 2015 and a case study on China and Malaysia. The regression model manifests public spending on education as having a stimulative effect on economic growth in countries that have a stable and relatively more developed economy. The case study investigated the relationships between six factors relating to the government’s expenditure in education and found that investment in secondary schools has a strong relationship with prominent economic returns.

Effect of Tax Revenue and Foreign Grants on Government Activities: A Study in Nepalese Perspective

This study aims to examine the impact of previous years’ government expenditure, tax revenue, and foreign grants on determining Nepal's government activities or expenditures. The secondary data from used in the analysis. It includes 48 data points from 1974/75 to 2021/22, collected from the publication of Nepal Rastra Bank and economic surveys of Nepal. The descriptive and exploratory research designs are used in this study. Some statistical and econometric tools like descriptive statistics, Kolmogorov-Smirnov test, multiple regression analysis, analysis of variance (ANOVA), and residual analysis are used in this study. The previous expenditure determines the present government activities. Tax revenue, foreign grants, and previous years’ government expenditures are individually and jointly significant in determining the government expenditure. One unit increase in tax revenue and foreign grants resulted in a 0.177 and 0.046 unit increase in government expenditure in Nepal, respectively. 86.5 percent variation in government activities is determined by the previous year's government expenditure, tax revenue, and foreign grants. The positive impact of tax revenue is more than foreign grants on spending government activities. So, the policymakers must prioritize measures that increase domestic tax revenue.

Does Wagner’s Hypothesis Explain the Dynamics of Health Expenditures in Transition Countries?

The purpose of this study is to analyze the short and long run causal relationship between public health expenditure and GDP per capita in transition economies within the context of the Wagner hypothesis. For the period 2000-2020, the empirical analysis was conducted using a dataset covering 22 transition countries: Latvia, Belarus, Czechia, Georgia, Bulgaria, Hungary, Estonia, Croatia, Moldova, Bosnia and Herzegovina, Slovenia, Ukraine, Armenia, Lithuania, Russian Federation, Slovak Republic, Romania, Turkmenistan, Uzbekistan, Tajikistan, Kyrgyz Republic, and Kazakhstan. Wagner emphasizes that increases in government expenditure, considered an endogenous variable, do not drive GDP growth. In essence, Wagner argues that a rise in GDP leads to an increase in government expenditures. The study assessed the validity of Wagner’s hypothesis by applying the Panel Cross-Sectionally Augmented Autoregressive Distributed Lag model (CS-ARDL), developed by Chudik et al. (2016), using annual data. For the empirical analysis, panel data from selected transition countries underwent causality tests proposed by Juodis, Karavias and Sarafidis (2021) and Dumitrescu and Hurlin (2012). The stationarity of the series was assessed using a panel unit root test. Subsequently, the panel cointegration test developed by Westerlund (2007) was employed to ascertain the long run cointegration of the variables in the subsequent phase. The results suggest that the Wagner hypothesis holds true within the context of transition countries, as indicated by the outcomes of the CS-ARDL model. The causality test revealed a one-way causal linkage between GDP per capita and health expenditure. Recommendations for those who make policy decisions were made in light of the findings.

The Social, Economic, and International Relations Impact of the 2023 Israel-Hamas War

Hamas's attack on Israel on October 7th, 2023, is not the first of its type. The Israeli-Palestine tension can be traced back to 1947 following the UN Partition Plan that divided the British Mandate of Palestine into Jewish and Arab Nations. Following Britain’s withdrawal from the Peninsula, the Jewish leaders declared the State of Israel, sparking the first Arab-Israeli conflict and this tension has worsened over the years. We use Thomas Hobbes's Social Contract to explain the tension between both parties. According to Hobbes, man lives in a State of Nature which is characterized by war and the continuous fear of death. This fear of death is the reason why man enters into a contract (Social Contract). There have been diverse schools of thought as to the origin of the Israeli-Palestine tension. Some believe it is the 1947 UN Partition Plan, others believe it is the June 1967 war, while others believe it is religion. Regardless of the original cause, it is evident that both parties have retained severe casualties over the years. Hence, the purpose of this paper is to review the economic, social, and international relations consequences of the 2023 Israel-Hamas war. The current war has had several social consequences: refugee migrations, lack of basic survival necessities, withdrawal of medical aid groups, starving refugees, desolated cities, and allegations of rape and sexual torture. Economically, the war has led to the loss of income from economic activities, an increase in oil prices, reignited inflation, high-interest rates, increased government expenditures, and exchange rates. It has also impacted international relations among nations due to a split in support between Israel and Palestine. Nevertheless, there is an allowance for further study because this paper is limited only to the social, economic, and international relations impact of the war.

New evidence of the relationship between media, culture industry, and mineral efficiency in high and low income asian economies

In addressing the current challenge, this research thoroughly investigates the intricate interplay between media, culture, and mineral efficiency in 23 diverse Asian economies, classified based on their income levels. Leveraging data spanning from 2005 to 2020 and utilizing logarithmic transformations, this study navigates the complex web of relationships. The results highlight a notable positive impact of media penetration on mineral efficiency, particularly in high and upper middle-income nations that boast advanced media infrastructure and higher levels of education. Concurrently, increased government expenditure on media amplifies mineral efficiency within these contexts. The influence of advertising, however, varies depending on consumer behavior, media infrastructure, and market maturity. Control variables bring to light the negative impact of population size and the positive correlation of clean energy with mineral efficiency in high and upper middle-income economies. Formulating tailored policies for media-driven enhancement of mineral efficiency is crucial for both income groups, with a focus on strategic campaigns, cultural initiatives, and educational programs.

Disaggregated Impact of Government Expenditure on Economic Growth: Evidence from Nigeria

The quest to accelerate the pace of development of the economy in a bid to transform Nigeria into the group of developed economies by  achieving certain macroeconomic objectives had called for increasing government expenditure in the provisions of public goods for the  people and the nation. In view of the role of public expenditures on national progress and prosperity, this study empirically examined the  disaggregated impact of the expenditures on economic growth in Nigeria for the period 1986-2021 using ARDL model as a tool for  analysis. The important findings from the study suggest that capital and recurrent expenditures on community, social and economic  services significantly boost economic growth in both short and long runs but the recurrent expenditure is negatively significant in the  short run. Similarly, recurrent expenditure on community, social and economic services is also positively and significantly related with real  GDP. Although capital and recurrent expenditures on administration and transfer are found to retard economic growth in the short  run; they turn out to significantly enhance national output in the long run. Other findings from the study revealed that capital stock  significantly promotes growth whereas labour slows down the growth across both short and long runs. The study recommends that  government should lay a solid foundation and provide a workable business ground for individuals and firms. Government should also  pay attention to finance growth enhancing spending categories such as infrastructure, research and development, education and health  that would enhance human development in the country.

Maliye Politikalarının İşsizlik Üzerine Etkisi: Türkiye İçin Ampirik Bir Kanıt

The economic policies implemented in a country can directly or indirectly affect many macroeconomic indicators. One of these macroeconomic indicators is the unemployment rate. The government's aim to reduce unemployment with the economic policies they implement. Especially in times of crisis, fiscal policies come to the fore, find a wider application area and support employment. The effects of fiscal policies may differ between expansionary and contractionary policies. The aim of this study is to investigate the effect of fiscal policies implemented in Türkiye on unemployment. For this purpose, monthly data for the period 2014:1-2022:12 were used in the study. In the study, public expenditures, direct and indirect tax revenues are used to represent fiscal policy. The ARDL bounds test was used in the analysis. In addition, the frequency domain causality test developed by Breitung and Candelon (2006) was used to the robustness check of the findings. The findings show that increases in government expenditures increase unemployment in the long run. On the other hand, while increases in indirect taxes reduce unemployment, increases in direct taxes have no effect on unemployment. The findings obtained from the causality test also support this situation.

Economic compensation for elite dismissals in authoritarian regimes: Evidence from Chinese provincial officials

Personnel dismissals of high-ranking elites in authoritarian regimes are ubiquitous. However, the consequences of these events have not been thoroughly examined. This study explores the economic consequences of political dismissals in China, one of the most durable authoritarian regimes in the world. In the face of dismissals, a regime's concern lies in ensuring that the dismissed officials do not cause antiregime sentiments toward the public. Therefore, the regime is willing to preempt the possibility by enhancing the state–public relationship. To realize this cooperation, the regime distributes economic benefits to the public. The satisfied public is unlikely to support the dismissed elites against the regime. By examining the government spending data of China's provinces, this paper demonstrates that the Chinese government compensates the local public by increasing government expenditures in the locality that has recently experienced a dismissal of one of its high-ranking officials.

Estimating fiscal multipliers for North Macedonia: a structural vector error correction model

The aim of this research is to evaluate the effectiveness of fiscal policy as a means of influencing output in North Macedonia. We apply a VEC model, and use quarterly data for the period 2000q1-2019q4. Our findings suggest that the possibility of fiscal policy to be used as a short-term stabilization tool was limited by the turbulent early phase of transition and several IMF arrangements; the exchange rate peg; and the scarcity of financial resources. The results of the baseline model suggest that a government spending shock is more effective as a stabilization fiscal tool in Macedonia, compared to a tax shock, although fiscal multipliers smaller than one suggest that the effectiveness of fiscal policy in boosting output is limited. The findings confirm the importance of structural characteristics, suggesing that not accounting for monetary policy reaction and debt dynamics will result in an overstatement of fiscal multipliers. In
 particular, the results suggest that the “crowding out” effect of fiscal policy due to interest rate pressure is absent and that monetary policy is accommodating an expansionary fiscal policy. The results of our investigation suggest that an increase in government expenditures will induce a significant increase in taxes. Moreover, although an increase in spending/taxes will result in a short-lived increase/decrease in public debt, as a priori expected, we find a long-equilibrium relationship between government spending and taxation suggesting that debt sustainability is not an issue in the case of Macedonia.

The Effects of Population Aging on GDP

The intensification of population aging affects all aspects of society. Among them, it has a particular impact on economic growth. Some scholars believe that aging will stimulate economic development, while more people believe that aging will burden the economy. Based on research on the five major gross domestic product factors: consumption, investment, government spending, net exports, and the labor market, the aging population brings more harmful effects to the growth of gross domestic production rather than optimistic effects. The aging population only benefits the government expenditure that the government consumes and invests more funds in the aging population. The increasing government expenditure directly raises the gross domestic product. By contrast, the excessive government spending will trigger more critical fiscal problems. Thus, compared with the negative impact on GDP in other areas, the increase in government spending cannot offset those adverse impacts. The government has to take steps to balance the plethora of adverse effects.

Federal Government Expenditure on Agriculture and Agricultural Outputs in Nigeria

Every industrialised country today passed through the agrarian era. In fact, the industrial sector takes its root from the agricultural sector. In a developing nation, government expenditure power is very central to all facets of development including agriculture. In view of this the study empirically evaluated the nexus between Federal Government Spending on the four sectors (crops, livestock, forestry and fishery) of agriculture as its determined agricultural output. The study employed secondary data spanning from 1981 – 2019 sourced from the CBN Statistical Bulletin, 2019 and World Bank Development Indicators, 2019. ADF and Unit Root testing technique, Johanson co-integration test, error correction model (ECM) and Granger causality test were employed as analytical tools in the course of the study,. Each of the four sectors of Agriculture was explained by total government expenditure on agriculture, interest rate, Annual Rainfall, official exchange rate and population growth. Federal government capital expenditure was found to be positively related to agricultural output, because an increase in government expenditure on agriculture is likely to lead to a multiple increase in agricultural output. The ECM model showed that interest rate on bank loan has significant positive impact on each agricultural output, annual rainfall also has a significant positive impact on each agricultural output while official exchange rate has a negative but significant impact on each agricultural output. The policy imports of this study is that governments at all levels should seek more productive ways to invest in the agricultural sector by upgrading to mechanised farming, providing fertilizers for improved yields, providing high-yield seedlings to ensure self-sufficiency; The commercial banks should complement government’s effort in ensuring that interest on loans to the agricultural sector are favourable as this would encourage more investors in the sector, among others.

The role of monetary and fiscal policies in determining environmental pollution: Revisiting the N-shaped EKC hypothesis for China.

The equilibrium between environmental quality and economic growth is one of the contemporary objectives of fiscal and monetary policies in the case of China. In this study, we investigate the extent of the existence of the N-shaped environmental Kuznets curve (EKC) hypothesis and measure the collision of fiscal and monetary policy on carbon emissions within the economic growth perspectives that China is witnessing. This study examines the dynamic nexus between monetary supply, government expenditure, and carbon emissions in China over the spanning from 1980 to 2019. The findings demonstrate that the money supply reduces carbon emissions in the short- and long-run. Precisely, a 1-unit augmentation in monetary policy tool (money supply) will significantly reduce the pressure on the environment by 0.29332 unit in the long-run and 0.79311 unit in the short-run. In contrast, the fiscal policy instrument (government expenditure) contributes to the increase in carbon emissions. Specifically, a 1-unit increase in government expenditure will increase the carbon emission by 0.17835 and 0.48247 units in the long-run and short-run, respectively. Additionally, the result also confirmed the N-shaped EKC hypothesis. Particularly, at the initial stage of economic growth, there are 1.58659 and 4.29197 unit increas in carbon emission in the long-run and short-run, respectively. However, after taking the square of economic growth, this reduces the environmental pollution by 0.3018 and 0.81665 units in the long-run and short-run, respectively. Finally, the cubic form of economic growth shows the 0.01755 and 0.04747 units increase in the pollution level in the long-run and short-run, respectively. Moreover, the study also found the presence of a causality link between government expenditure, economic growth, and carbon emissions. These findings will aid policymakers in implementing fiscal and monetary policies that promote long-term development while lowering carbon emissions.

The Impact of Housing Rental Market Development on Household Consumption and Its Mechanism: Evidence from 69 Large- and Medium-Sized Cities in China

In recent years, to address the sluggish domestic demand caused by the epidemic, consumption has declined. The General Office of the State Council has introduced a series of policy measures around the improvement and development of the housing rental market. The paper empirically investigates the influence mechanism of the development of the housing rental market on residents’ consumption using relevant data from the 2010–2019 City Statistical Yearbook and the Xi Tai database. It is found that the increase in the scale of housing rentals significantly raises the level of residents’ consumption. Specifically, the increase in the scale of housing rentals can increase government expenditure, firm up residents’ consumption confidence, and thus raise residents’ consumption level; urban labor inflow plays a negative moderating role in the development of the housing rental market to promote residents’ consumption level. The heterogeneity study shows that the improvement and development of the housing rental market in the eastern coastal region has a more significant role in promoting residents’ consumption level, while it is not significant for residents’ consumption level in the central and western regions. The study suggests that to release the vitality of residents’ consumption, government spending should be increased, the impact of inflowing labor on the labor market should be reduced, and the development of the housing rental market should be improved and nurtured.

Government sectoral spending and human development in Nigeria: Is there a link?

The continuous increase in government expenditure in the last three decades without a commensurate improvement in all known indicators of development has generated heated debates among scholars as to the justification for the persistent rise in the annual expenditure of the government. Therefore, this study examined the effects of government sectoral spending on human development in Nigeria using annual data spanning the period 1986–2021. This study contributed to the literature by examining the effects of government sectoral spending on human development using a robust human development index that captures the multifaceted state of economic development in terms of educational attainment, life expectancy and per capita income, unlike previous studies that concentrated on aggregate government spending and used the gross domestic product as an indicator of development. Surprisingly, however, results from the Autoregressive Distributed Lag (ARDL) model employed indicated that both in the short and long run, there is no link between government sectoral spending and human development in Nigeria. Although, outcomes from ECMs suggest that government sectoral spending may affect human development in the long run.

Econometrics Analysis of the Effect of Human Capital Development on Economic Growth in Nigeria

Despite arrays of empirical literatures on the impact human capital development has on the economic growth the debates is inconclusive with mixed outcome. Thus, the main objective of this study is to empirically examine the impact of human capital development on economic growth in Nigeria between the periods of 1999 and 2022. To achieve this said objective; time series secondary data was sourced from Central Bank of Nigeria Statistical Bulletin, 2022. Thereafter, Autoregressive Distributed Lag Regression Estimate (ARDL) analysis was conducted with the aid of E-view 10. Findings of this study reveals as follows; that government expenditure on education have positive and statistically significant impact on RGDP. Equally, government expenditure on health have statistically significant impact on RGDP. More so, life span have positive and statistically insignificant impact on RGDP. Again, total school enrollments (SER) have positive and statistically insignificant impact on RGDP. Lastly, this study find out that human capital development has statistically significant short run and long run relationship with economic growth in Nigeria between 1999 and 2022. Therefore, the following recommendations are suggested: first, that Nigeria government at all levels should ensure that priority should be placed on all the components or indicators of human capital development of the Nigerian citizens. Second, government effort toward increase government expenditure on education should be sustaining. Third, governments at all levels should increase the funding for health sector in order to ensure the citizens live healthy so as to be able to increase their productivity and afterward, contributes to economic growth. Fourth, governments’ efforts should be directed to wellbeing of her citizen in order to pro-long the life span Five, governments at all levels should formulate appropriate policy that will ensure that school enrollments should be at upward trend.

An empirical investigation of the relationship between government revenue, expenditure, and economic growth in selected EMEs

Purpose ─ This article explores the relationship between government revenue, government expenditure, and economic growth for nine emerging market economies using annual data from 1991-92 to 2019-20. Method ─ This paper distinguishes itself from the existing literature through the application of co-integration tests, vector error correction, DOLS and FMOLS for an empirical investigation of a unique panel data set of select emerging economies across Asia, Africa, Europe and Latin America. A bi-directional causal long-run relationship between economic growth and government expenditure, as well as between government expenditure and government revenue, was found using standard panel co-integration tests. Findings ─ The long-run elasticities computed using VECM were confirmed from DOLS as well as FMOLS estimates. A one per cent increase in expenditure and revenue, in the long run, would result in an increase in GDP by 0.94 and 0.90 per cent, respectively. Similarly, an increase in GDP by one per cent would lead to an increase in government expenditure by 1.1 per cent. On the other hand, an increase in government revenue by one per cent would cause a corresponding increase in government expenditure by nearly one per cent. The findings of this research point to a positive association between government revenue, expenditure, and economic growth, which will be valuable to policymakers. Contribution ─ Our combination of country selection covering economies from different continents is a first of its kind to the best of our knowledge. Another contribution is the application of panel cointegration and panel error correction techniques to fully use the panel data set, while most previous studies utilised the typical time series modelling with individual time series data.