IDEAS home Printed from https://ideas.repec.org/a/ibn/ibrjnl/v13y2020i3p133.html
   My bibliography  Save this article

Education Expenditure-Led Growth: Evidence from Nigeria (1980-2018)

Author

Listed:
  • Olukemi I. Lawanson
  • Dominic I. Umar

Abstract

This study examines the belief that education fosters economic growth by analyzing the impact of Government education expenditures at different levels on economic growth using Nigerian data for the period 1980-2018. Time series econometrics tests like Unit Root, cointegration, Error Correction Model and Granger Causality were employed to test the hypothesis of education expenditure-led growth strategy. The outcomes of the studies showed that that there is cointegration between total government education expenditures, primary, secondary and tertiary education expenditure and economic growth. The outcomes of the study also revealed that all levels of education expenditure contribute to economic growth positively (tertiary education exerting more positive impact) and are statistically significant (except primary education expenditure that is not significant) at 5%level. The study equally revealed bi-directional causality between t all levels public expenditure on education and economic growth. The study therefore, recommends improved funding for education at all levels given their interconnections. It also recommends that funding of primary education should by supported Federal Government as weak primary school funding will impact on quality of pupils that graduate to secondary school. Again policies aimed at diversifying and broadening the Nigerian economy be rekindled as economic growth have the potential of increasing education spending.

Suggested Citation

  • Olukemi I. Lawanson & Dominic I. Umar, 2020. "Education Expenditure-Led Growth: Evidence from Nigeria (1980-2018)," International Business Research, Canadian Center of Science and Education, vol. 13(3), pages 133-133, March.
    • Handle: RePEc:ibn:ibrjnl:v:13:y:2020:i:3:p:133
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ibr/article/download/0/0/42121/43849
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ibr/article/view/0/42121
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Glewwe, Paul & Maïga, Eugénie & Zheng, Haochi, 2014. "The Contribution of Education to Economic Growth: A Review of the Evidence, with Special Attention and an Application to Sub-Saharan Africa," World Development, Elsevier, vol. 59(C), pages 379-393.
    3. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    4. Luigi Paganetto & Edmund S. Phelps (ed.), 2003. "Finance, Research, Education and Growth," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-4039-2023-2, March.
    5. Luigi Paganetto & Pasquale Lucio Scandizzo, 2003. "The Role of Education and Knowledge in Endogenous Growth," Palgrave Macmillan Books, in: Luigi Paganetto & Edmund S. Phelps (ed.), Finance, Research, Education and Growth, chapter 6, pages 90-104, Palgrave Macmillan.
    6. Glewwe, P. & Muralidharan, K., 2016. "Improving Education Outcomes in Developing Countries," Handbook of the Economics of Education,, Elsevier.
    7. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 653-670, November.
    8. Peter Lorentzen & John McMillan & Romain Wacziarg, 2008. "Death and development," Journal of Economic Growth, Springer, vol. 13(2), pages 81-124, June.
    9. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    10. Robert J. Barro, 2001. "Human Capital and Growth," American Economic Review, American Economic Association, vol. 91(2), pages 12-17, May.
    11. repec:bla:obuest:v:61:y:1999:i:0:p:653-70 is not listed on IDEAS
    12. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    13. Paul Schultz, T., 2002. "Why Governments Should Invest More to Educate Girls," World Development, Elsevier, vol. 30(2), pages 207-225, February.
    14. Daron Acemoglu & Simon Johnson, 2007. "Disease and Development: The Effect of Life Expectancy on Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 925-985, December.
    15. T. Paul Schultz, 1999. "Health and Schooling Investments in Africa," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 67-88, Summer.
    16. Granger, C. W. J., 1981. "Some properties of time series data and their use in econometric model specification," Journal of Econometrics, Elsevier, vol. 16(1), pages 121-130, May.
    17. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    18. Thorvaldur Gylfason & Gylfi Zoega, 2003. "Education, Social Equality and Economic Growth: A View of the Landscape," CESifo Economic Studies, CESifo Group, vol. 49(4), pages 557-579.
    19. George Chisom Okorie, 2014. "Finance, Investment and Economic Growth: The Nigerian Experience," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 2(2), pages 63-69.
    20. Paul Glewwe, 2002. "Schools and Skills in Developing Countries: Education Policies and Socioeconomic Outcomes," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 436-482, June.
    21. Gupta, Manash Ranjan & Chakraborty, Bidisha, 2006. "Human Capital Accumulation and Endogenous Growth in a Dual Economy," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 47(2), pages 169-195, December.
    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. Fredrick Nsambu Kijjambu & Benjamin Musiita & Asaph Kaburura Katarangi, 2024. "Human Capital Development and Unemployment in Uganda: The Keynesian Theory of Unemployment in Perspective," Journal of Economics and Behavioral Studies, AMH International, vol. 16(1), pages 94-108.

    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. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).
    2. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    3. NAPO, Fousséni, 2018. "Capital humain, productivité manufacturière et croissance économique dans les pays de l’UEMOA [Human capital, manufacturing productivity and economic growth in WAEMU countries]," MPRA Paper 89450, University Library of Munich, Germany, revised 12 Oct 2018.
    4. Kemal Soyer & Hale Ozgit & Husam Rjoub, 2020. "Applying an Evolutionary Growth Theory for Sustainable Economic Development: The Effect of International Students as Tourists," Sustainability, MDPI, vol. 12(1), pages 1-20, January.
    5. Audi, Marc & Ali, Amjad & Fayad Hamadeh, Hani, 2022. "Nexus among innovations, financial development and economic growth in developing countries," MPRA Paper 115220, University Library of Munich, Germany.
    6. Sultana, Tanzila & Dey, Sima Rani & Tareque, Mohammad, 2022. "Exploring the linkage between human capital and economic growth: A look at 141 developing and developed countries," Economic Systems, Elsevier, vol. 46(3).
    7. MESSAILI, Moussa & KAID TLILANE, Nouara, 2018. "Essai d’évaluation de la contribution de la santé à la croissance économique en Algérie [An assessment of the contribution of health to economic growth in Algeria]," MPRA Paper 88013, University Library of Munich, Germany, revised 18 Jul 2018.
    8. Dakpogan, Arnaud & Smit, Eon, 2018. "The effect of electricity losses on GDP in Benin," MPRA Paper 89545, University Library of Munich, Germany.
    9. Sefa Awaworyi Churchill & Mehmet Ugur & Siew Ling Yew, 2017. "Does Government Size Affect Per-Capita Income Growth? A Hierarchical Meta-Regression Analysis," The Economic Record, The Economic Society of Australia, vol. 93(300), pages 142-171, March.
    10. Aysit Tansel & Ceyhan Ozturk & Erkan Erdil, 2021. "The Impact of Body Mass Index on Growth, Schooling, Productivity, and Savings: A Cross-Country Study," Koç University-TUSIAD Economic Research Forum Working Papers 2118, Koc University-TUSIAD Economic Research Forum.
    11. Dierk Herzer & Holger Strulik & Sebastian Vollmer, 2012. "The long-run determinants of fertility: one century of demographic change 1900–1999," Journal of Economic Growth, Springer, vol. 17(4), pages 357-385, December.
    12. Martins, Adriel M.F. & Fernandes, Leonardo H.S. & Nascimento, Abraão D.C., 2023. "Scientific progress in information theory quantifiers," Chaos, Solitons & Fractals, Elsevier, vol. 170(C).
    13. Márquez, Miguel A. & Ramajo, Julián & Hewings, Geoffrey J. D., 2011. "Public Capital and Regional Economic Growth: a SVAR Approach for the Spanish Regions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 21, pages 199-223.
    14. Maha Kalai & Nahed Zghidi, 2019. "Foreign Direct Investment, Trade, and Economic Growth in MENA Countries: Empirical Analysis Using ARDL Bounds Testing Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 397-421, March.
    15. Boachie, Micheal Kofi, 2015. "Effect of health on economic growth in Ghana:An application of ARDL bounds test to cointegration," MPRA Paper 67201, University Library of Munich, Germany.
    16. Paul Lau, Sau-Him, 1999. "I(0) In, integration and cointegration out:: Time series properties of endogenous growth models," Journal of Econometrics, Elsevier, vol. 93(1), pages 1-24, November.
    17. Nicholas M. Odhiambo, 2022. "Does Foreign Direct Investment Spur Economic Growth? New Empirical Evidence From Sub-Saharan African Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 67(233), pages 61-84, April – J.
    18. Fernandes, Leonardo H.S. & de Araújo, Fernando H.A. & Silva, Igor E.M. & Neto, Jusie S.P., 2021. "Macroeconophysics indicator of economic efficiency," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 573(C).
    19. Voxi Heinrich Amavilah & Antonio Rodríguez Andrés, 2024. "Knowledge Economy and the Economic Performance of African Countries: A Seemingly Unrelated and Recursive Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 110-143, March.
    20. Adejumo, Oluwabunmi O. & Asongu, Simplice A. & Adejumo, Akintoye V., 2021. "Education enrolment rate vs employment rate: Implications for sustainable human capital development in Nigeria," International Journal of Educational Development, Elsevier, vol. 83(C).

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - 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:ibn:ibrjnl:v:13:y:2020:i:3:p:133. 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.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.