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Public expenditure and human development in Nigeria in the last decade, composition and distributional impacts

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  • Richardson Kojo Edeme
  • Chigozie Nelson Nkalu

Abstract

Beyond the country-level impact, this study evaluates public expenditure in Nigeria in the last decade based on composition and distributional impacts on human development at the state-level considering education, health, agriculture and rural development water resources energy, housing and environmental protection. Using data generated from 20 states from 2007-2017, the empirical analysis indicates that the efficacy of education, health, agriculture and rural development and water resources in improving human development is greater than that of energy, housing and environmental protection expenditure. More interestingly, the positive effect of capital expenditure is mitigated by increased recurrent expenditure. The combination of these factors strongly reduces the capability of public expenditure to foster human development. Based on the distributional impact assessment model, education, health, agriculture and rural development and water resources has positive marginal impact while energy, housing and environmental protection has negative marginal impact. Together, these results further advance the case for improving expenditure on the components and sectors that enhances human development. In other words, the public policy plays a great role in human development expenditure in Nigeria.

Suggested Citation

  • Richardson Kojo Edeme & Chigozie Nelson Nkalu, 2019. "Public expenditure and human development in Nigeria in the last decade, composition and distributional impacts," Economics and Business Letters, Oviedo University Press, vol. 8(2), pages 62-73.
  • Handle: RePEc:ove:journl:aid:13012
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/13012
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    1. Stefano Paternostro & Anand Rajaram & Erwin R. Tiongson, 2007. "How Does the Composition of Public Spending Matter?," Oxford Development Studies, Taylor & Francis Journals, vol. 35(1), pages 47-82.
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    3. Mundle, Sudipto, 1998. "Financing human development: Some lessons from advanced Asian countries," World Development, Elsevier, vol. 26(4), pages 659-672, April.
    4. Richardson Kojo Edeme & Chigozie Nelson Nkalu & Innocent A. Ifelunini, 2017. "Distributional impact of public expenditure on human development in Nigeria," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 44(12), pages 1683-1693, December.
    5. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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    Cited by:

    1. Shazia Kousar & Farhan Ahmed & Muhammad Afzal & Juan E. Trinidad Segovia, 2023. "Is government spending in the education and health sector necessary for human capital development?," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.

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