IDEAS home Printed from https://ideas.repec.org/a/ris/ilojep/0042.html

Public Expenditure And Inclusive Growth In Nigeria

Author

Listed:
  • M.A. Yaru

    (University of Ilorin, Ilorin, Nigeria)

  • H.I. Mobolaji

    (University of Ilorin, Ilorin, Nigeria)

  • A. A. Kilishi

    (University of Ilorin, Ilorin, Nigeria)

  • A.T. Yakubu

    (University of Ilorin, Ilorin, Nigeria)

Abstract

Nigeria has recorded tremendous and steady rise in public spending and economic growth over the years. However, the rates of poverty and unemployment are on the increase. This raised public concern on the inclusiveness of Nigeria’s economic growth. This paper therefore examined: (i) the inclusiveness of Nigeria’s economic growth; and (ii) the impact of public expenditure on inclusive growth in Nigeria. The paper used secondary data for the period between 1960 and 2012. Principal Component Analysis was used to compute the inclusive growth index, while time series regression analysis was used for the second objective. The results showed that only the impact of state governments’ expenditure was significant at 10 percent. However, expansionary fiscal policy could undermine inclusive growth if it triggers to inflation. Also, the results suggested that excessive trade openness could inhibit the inclusiveness of the growth process.

Suggested Citation

  • M.A. Yaru & H.I. Mobolaji & A. A. Kilishi & A.T. Yakubu, 2018. "Public Expenditure And Inclusive Growth In Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 5(5), pages 46-61.
    • Handle: RePEc:ris:ilojep:0042
    as

    Download full text from publisher

    File URL: https://www.ijep.org/issues/volume5issue52018/Yaru2018.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aladejare, Samson Adeniyi, 2013. "Government spending and economic growth: evidence from Nigeria," MPRA Paper 43916, University Library of Munich, Germany.
    2. repec:wbk:wbpubs:18237 is not listed on IDEAS
    3. repec:wbk:wbpubs:13191 is not listed on IDEAS
    4. A, Usman & H. I, Mobolaji & A. A, Kilishi & M. A, Yaru & T. A, Yakubu, 2011. "Public Expenditure And Economic Growth In Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 1(3), pages 104-113.
    5. Seok-Kyun Hur, 2014. "Government Spending and Inclusive Growth in Developing Asia," ADB Economics Working Paper Series 415, Asian Development Bank.
    6. Usman.A & Mobolaji H. I & Kilishi A.A & Yaru M. A & Yakubu, T. A, 2011. "Public Expenditure And Economic Growth In Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 1(3), pages 104-113, September.
    7. Rahul Anand & Mr. Saurabh Mishra & Mr. Shanaka J Peiris, 2013. "Inclusive Growth: Measurement and Determinants," IMF Working Papers 2013/135, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammed Aminu Yaru, 2022. "Budget transparency and internal revenue mobilisation at sub-national government level: evidence from Nigeria," Public Sector Economics, Institute of Public Finance, vol. 46(4), pages 505-531.
    2. Stephen Taiwo Onifade & Savaş Çevik & Savaş Erdoğan & Simplice Asongu & Festus Victor Bekun, 2020. "An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-13, December.
    3. Friday Ebong & Fidelis Ogwumike & Udeme Udongwo & Olumide Ayodele, 2016. "Impact of Government Expenditure on Economic Growth in Nigeria: A Disaggregated Analysis," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(1), pages 113-121.
    4. 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.
    5. Ekor, Maxwell & Adeniyi, Oluwatosin, 2014. "Government Spending and Economic Growth: A Revisit of the Nigerian Experience," MPRA Paper 107840, University Library of Munich, Germany.
    6. Mohd Arshad ANSARI & Faraz KHAN & Manish Kumar SINGH, 2021. "Public expenditure and economic development: New evidence from the BRICS-SAARC-ASEAN region," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(627), S), pages 155-174, Summer.
    7. Ocheni S.I., 2018. "Empirical Examination of the Effects of Government Spending on the GDP Growth Rates of Nigeria," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 9(3), pages 26-31, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephen Taiwo Onifade & Savaş Çevik & Savaş Erdoğan & Simplice Asongu & Festus Victor Bekun, 2020. "An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-13, December.
    2. Friday Ebong & Fidelis Ogwumike & Udeme Udongwo & Olumide Ayodele, 2016. "Impact of Government Expenditure on Economic Growth in Nigeria: A Disaggregated Analysis," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(1), pages 113-121.
    3. Ocheni S.I., 2018. "Empirical Examination of the Effects of Government Spending on the GDP Growth Rates of Nigeria," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 9(3), pages 26-31, September.
    4. 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.
    5. William Mbanyele, 2019. "Public Expenditure and Economic Growth Causal Linkage: Disaggregated Empirical Analysis for Zimbabwe," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(4), pages 239-252, December.
    6. Ekor, Maxwell & Adeniyi, Oluwatosin, 2014. "Government Spending and Economic Growth: A Revisit of the Nigerian Experience," MPRA Paper 107840, University Library of Munich, Germany.
    7. Mohd Arshad ANSARI & Faraz KHAN & Manish Kumar SINGH, 2021. "Public expenditure and economic development: New evidence from the BRICS-SAARC-ASEAN region," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(627), S), pages 155-174, Summer.
    8. Isaac K. Ofori, 2021. "Towards Building Shared Prosperity in Sub-Saharan Africa: How Does the Effect of Economic Integration Compare to Social Equity Policies?," Working Papers of the African Governance and Development Institute. 21/045, African Governance and Development Institute..
    9. Christoph Dörffel & Sebastian Schuhmann, 2020. "What is Inclusive Development? Introducing the Multidimensional Inclusiveness Index," Jena Economics Research Papers 2020-015, Friedrich-Schiller-University Jena.
    10. Simplice Asongu & Jacinta Nwachukwu, 2016. "Welfare Spending and Quality of Growth in Developing Countries: A Note on Evidence from Hopefuls, Contenders and Best Performers," Working Papers of the African Governance and Development Institute. 16/028, African Governance and Development Institute..
    11. Khadijah Iddrisu & Isaac Ofoeda & Joshua Yindenaba Abor, 2023. "Inward foreign direct investment and inclusiveness of growth: will renewable energy consumption make a difference?," International Economics and Economic Policy, Springer, vol. 20(3), pages 367-388, July.
    12. Jong Woo Kang, 2015. "Interrelation between Growth and Inequality," ADB Economics Working Paper Series 447, Asian Development Bank.
    13. Wilfred Catin Botchuin, 2023. "Inclusive Growth Analysis: Evidence from Côte d’Ivoire," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 76(1), pages 91-134.
    14. Simplice Asongu & Rexon Nting, 2021. "The role of finance in inclusive human development in Africa revisited," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 38(2), pages 345-370, February.
    15. Jeffrey Kouton, 2021. "The impact of renewable energy consumption on inclusive growth: panel data analysis in 44 African countries," Economic Change and Restructuring, Springer, vol. 54(1), pages 145-170, February.
    16. V. A. Barinova & S. P. Zemtsov, 2020. "Inclusive Growth and Regional Sustainability of Russia," Regional Research of Russia, Springer, vol. 10(1), pages 10-19, January.
    17. Ofori, Isaac K. & Osei, Dennis B. & Alagidede, Imhotep P., 2022. "Inclusive growth in Sub-Saharan Africa: Exploring the interaction between ICT diffusion and financial development," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 46(7).
    18. Ekundayo Mesagan & Juliet Adenuga, 2020. "Effects of Oil Resource Endowment, Natural Gas and Agriculture Output: Policy Options for Inclusive Growth," BizEcons Quarterly, Strides Educational Foundation, vol. 8, pages 15-34.
    19. Nidhaleddine Ben Cheikh & Christophe Rault, 2025. "Financial Inclusion for Inclusive Growth," Working Papers 1803, Economic Research Forum, revised 01 Dec 2025.
    20. Séraphin Brice Minkoe Bikoula & Adalbert Abraham Ghislain Melingui Bate & Ali Haruna, 2025. "The Effect Of Economic Complexity On Inclusive Growth In Developing Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 70(247), pages 45-93, October –.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:ilojep:0042. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniel Akanbi (email available below). General contact details of provider: https://edirc.repec.org/data/deilong.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.