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Government Spending and Inclusive-Growth Relationship in Nigeria: An Empirical Investigation

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  • Bashir Olayinka Kolawole

    (Department of Economics, Faculty of Social Sciences, Lagos State University, Lagos, Nigeria)

Abstract

This study has investigated the relationship between government spending and inclusive growth in Nigeria over the period 1995 to 2014. Speci?cally, it examined how, and to what extent, government spending on education, government spending on health, economic freedom, public resource use, and real GDP growth rate have impacted on inclusive growth in the country. It used the Dickey-Fuller GLS unit root test to ascertain the order of integration of the series. Consequently, through the Auto-Regressive Distributed Lag (ARDL) bound testing technique, the study found that in the long-run government spending on health, economic freedom, public resource use and real GDP growth rate had signi?cantly positive in?uence on inclusive growth. In the short-run, however, only real GDP impacted signi?cantly on inclusive growth while other variables were not signi?cant in causing inclusive growth. Thus, in conclusion, government spending in the form of redistributive spending on health propelled inclusive growth in Nigeria. JEL Classification: B52; H50; O47

Suggested Citation

  • Bashir Olayinka Kolawole, 2016. "Government Spending and Inclusive-Growth Relationship in Nigeria: An Empirical Investigation," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 19(2), pages 33-56, November.
    • Handle: RePEc:zag:zirebs:v:19:y:2016:i:2:p:33-56
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    Cited by:

    1. Amponsah, Mary & Agbola, Frank W. & Mahmood, Amir, 2021. "The impact of informality on inclusive growth in Sub-Saharan Africa: Does financial inclusion matter?," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1259-1286.
    2. Kolawole Opeyemi Olawole, Temidayo Oyeyemi Adebayo, Opeoluwa Samuel Idowu, 2018. "Openness, Government Size and Economic Growth in Nigeria," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(1), pages 71-84, March.
    3. Xincai Gao & Lin Ji & Abbas Ali Chandio & Amber Gul & Martinson Ankrah Twumasi & Fayyaz Ahmad, 2022. "Towards Sustainable Agriculture in China: Assessing the Robust Role of Green Public Investment," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    4. Vikram Chadha & Ishu Chadda, 2020. "The imperative of social sector development for achieving the goal of inclusive growth in India: an analytical study," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(2), pages 355-378, December.
    5. Udi Joshua, 2019. "An ARDL Approach to the Government Expenditure and Economic Growth Nexus in Nigeria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(3), pages 152-160, September.
    6. Jeffrey Kouton, 2019. "Relationship between economic freedom and inclusive growth: a dynamic panel analysis for sub-Saharan African countries," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(1), pages 143-165, June.

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    More about this item

    Keywords

    ARDL; cointegration; government spending; inclusive growth; Nigeria;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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