Government Expenditure and Education Sub-sector Development in Nigeria: An Empirical Investigation
International Journal of Accounting, Finance and Risk Management
Volume 5, Issue 3, September 2020, Pages: 149-156
Received: Dec. 2, 2019; Accepted: Mar. 27, 2020; Published: Aug. 4, 2020
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Authors
Stephen Ebhodaghe Ughulu, Department of Banking and Finance, Igbinedion University, Okada, Edo State, Nigeria
Stella Eghoikhunu Ughulu, Department of Political Science and Public Administration, Igbinedion University, Okada, Edo State, Nigeria
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Abstract
This paper examined empirically the impact of government expenditure on the education sub-sector development in Nigeria for the period 1980 to 2017. Government expenditure was decomposed into capital and recurrent expenditures, while education sub-sector development was viewed from the perspectives of the States and Local Governments dependence (FDR), fiscal concentration (FCR), and per capita income (PCI). The data of the study were obtained from both the National Bureau of Statistics and the Central Bank of Nigeria Statistical Bulletins. The fully modified ordinary least squares (FMOLS) approach of the econometrics was used to estimate the findings/results of the paper. Some of the major findings of the paper indicated that all the variables became stationary after first differencing and that the series for all the equations were cointegrated thereby suggesting the existence of long run relationships among the variables. The short run dynamics results were robust and impressive given that each of the coefficients of determination (R-squared) and their adjusted counterparts were quite high. Furthermore, the results indicated that while capital expenditure exerted negative impact on the education sub-sector development, recurrent expenditure displayed a positive impact on the sub-sector. The paper therefore recommends that government, as a matter of frantic efforts and deliberate policies, scales up its capital expenditure on education sub-sector development as well as intensifying capacity building that would engender qualitatively improved education service delivery. This would only be possible if urgent institutional frameworks, procedures and governance styles that accord with international standards are urgently introduced and implemented.
Keywords
Government Expenditure, Education Sub-Sector, Nigeria, Fully Modified OLS
To cite this article
Stephen Ebhodaghe Ughulu, Stella Eghoikhunu Ughulu, Government Expenditure and Education Sub-sector Development in Nigeria: An Empirical Investigation, International Journal of Accounting, Finance and Risk Management. Vol. 5, No. 3, 2020, pp. 149-156. doi: 10.11648/j.ijafrm.20200503.14
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Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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