PUBLIC EDUCATION RECURRENT EXPENDITURE AND PRODUCTIVITY IN THE MANUFACTURING SECTOR IN NIGERIA
Keywords:
Recurrent Education Expenditure, manufacturing output, economic growth
Abstract
The debate on whether governments should increase their human capital investment is a popular topic within the realm of economics. This research seeks to solve this issue by looking into the importance of productivity in the manufacturing output as well as the function of productive expenditure.The study examines how the recurrent expenditure of public education in Nigeria between 1981 and 2019 affected manufacturing productivity. The study employed the Augmented Dickey-Fuller (ADF) unit root test and Auto Regressive Distributive Lags (ARDL) approach to analyze the relationship between public education recurrent expenditure, public health spending, trade openness, inflation rate, and the output of the manufacturing sector. The study reveals that public education recurrent expenditure is not significantly associated with manufacturing productivity. According to the study, the government should also concentrate on implementing policy frameworks aimed at improving manufacturing sector productivity by targeting public recurrent education spending.
References
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32. Olayemi, S. O. (2012). Human capital investment and industrial productivity in Nigeria. International Journal of Humanities and Social Science, 2 (16), 298-307.
33. Olorunfemi, S., Tomola, M. O., Adekunjo, F. O. and Ogunleye, E. O (2013). Manufacturing performance in Nigeria: Implication for sustainable development. Asian Economic and Financial Review, 3 (9), 1195–1213.
34. Oriakhi, D. E., & Ameh, G. (2014). Government expenditure and the development of the education sector in Nigeria: An evaluation. Review of Public Administration and Management, 3(5), 147-160.
35. Oseni, I. O. (2016). Exchange rate volatility and private consumption in Sub-Saharan African countries: A system-GMM dynamic panel analysis. Future Business Journal, 2(2), 103-115. doi:10.1016/j.fbj.2016.05.004
36. Oseni, M. (2012). Adequacy of budgetary allocation to educational institutions in Nigeria. Pakistan Journal of Business and Economic Review, 3(1), 143-157
37. Oyedokun, G. E. (2018). Human capital formation and economic growth in Nigeria. International Journal of Finance & Banking Studies (2147-4486), 7(3), 44-65.
38. Rigolini, J., Lustig, N., Gentilini, U., Monsalve, E., & Quan, S. (2020). Comparative effects of universal basic income: emerging issues and estimates. Exploring universal basic income, 123.
39. Samargandi, N. (2018). Determinants of Labour Productivity in MENA Countries. Emerging Markets Finance and Trade, 54(5), 1063–1081. doi:10.1080/1540496x.2017.1418658
40. Tang, C. F. (2014). The effect of real wages and inflation on labour productivity in Malaysia. International Review of Applied Economics, 28(3), 311-322.
41. UNESCO. (2016). Education for people and planet: creating sustainable futures for all. Global education monitoring report. Paris: UNESCO Publishing.
42. Wijaya, A. (2019). The impact of trade openness on labour productivity: Evidence from Indonesia. National Graduate Institute for Policy Studies.1-18
43. World Development Indicators (2014). Washington D.C: World Bank. Retrieved from https://issuu.com/world.bank.publications/docs/9781464801631www.wikipedia.org/ wiki/government_spending
2. Al-Samarrai, S., Cerdan-Infantes, P., & Lehe, J. D. (2019). Mobilizing resources for education and improving spending effectiveness: establishing realistic benchmarks based on past trends. World Bank Policy Research Working Paper, (8773).
3. Amirkhalkhali, S., & Dar, A. (2019). Trade openness, factor productivity, and economic growth: recent evidence from OECD countries (2000-2015). Applied Econometrics and International Development, 19(1), 5-14.
4. Anthonia, T. O. (2012). Education and economic growth in Nigeria: a comparative analytical approach. European Journal of Globalization and Development Research, 5(1), 330-342.
5. Atakan, D., & Hakan, P. (2019). The effect of government educational expenditure on labor productivity in Turkish manufacturing sector. ZbornikradovaEkonomskogfakulteta u Rijeci: časopis za ekonomskuteorijuipraksu, 36(2), 519-535.
6. Ayodele, A.P. & Akinwale, O. (2019). Effect of Government Expenditure Components on Agricultural Productivity in Nigeria (1981-2017). Journal of Economics and Sustainable Development, 10(18); 1-13
7. Baah-Boateng, W. (2013). Human Capital Development: The Case of Education as a Vehicle for Africa's Economic Transformation.
8. Conto, C. A., Akseer, S., Dreesen, T., Kamei, A., Mizunoya, S., & Rigole, A. (2021). Potential effects of COVID-19 school closures on foundational skills and Country responses for mitigating learning loss. International Journal of Educational Development, 87, 102434.
9. De-Guzman. (2020). Public Expenditure on Education. In W. Leal, A. A.M, L. Brandli, P. Özuyar, & T. Wall, Quality Education. Encyclopedia of the UN Sustainable Development Goals. Springer, Cham. doi:10.1007/978-3-319-95870-5_81
10. Durmaz, A., & Pabuçcu, H. (2018). The effect of government educational expenditure on labour productivity in the Turkish manufacturing sector. Zbornikradova Ekonomskogfakulteta u Rijeci: časopis za ekonomskuteorijuipraksu, 36(2), 519-535.
11. Eatwell, J. M. & Newman, P. (1991). The New Palgrave: A Dictionary of Economics, 3, 4- 12, Macmillan, Tokyo
12. Ebenezer, M., Ngarava, S., Etim, N. A., & Popoola, O. (2019). Impact of government expenditure on agricultural productivity in South Africa. The Journal of Social Sciences Research, 5(12), 1734-1742.
13. Edame, G. E. & Eturoma, A. D. (2014). The determinants of public expenditure on educational infrastructural facilities and economic growth in Nigeria. Journal of Business Management and Economies. 5(6), 152 – 162
14. Emmanuel, F. O., & Oladiran, O. I. (2015). Effect of government capital expenditure on manufacturing sector output in Nigeria. Business and Economic Research, 5(2), 136–152.
15. Etale, L. M., & Enemugha, E. G. (2019). Reassessing the link between government spending on education and national development in Nigeria. International Journal of Education, Learning and Development, 7(10), 20-36.
16. Flabbi, L., & Gatti, R. (2018). A primer on human capital. World Bank Policy Research Working Paper, (8309).
17. Heyneman, S. P., & Stern, J. M. (2014). Low cost private schools for the poor: What public policy is appropriate?. International Journal of Educational Development, 35, 3-15.
18. Iheanacho, E. (2017). Empirical review on the relationship between real wages, inflation and labour productivity in Nigeria. ARDL bounds testing approach. Issues in Economics and Business, 3(1), 9-29
19. Jeff-Anyene, S., Ezu, G., &Ananwude, A. (2019). Government Expenditure and Industrial Development in Nigeria: Long Run and Short Run Dynamics from ARDL Approach. Journal of Scientific Research & Reports, 23(6), 1-9.
20. Kimaro, E. L., Keong, C. C., & Sea, L. L. (2017). Government expenditure, efficiency and economic growth: a panel analysis of Sub-Saharan African low-income countries. African Journal of Economic Review, 5(2), 34-54.
21. Kumar, S., Webber, D. J., & Perry, G. (2012). Real wages, inflation and labour productivity in Australia. Applied Economics, 44(23), 2945-2954.
22. Kurt, S. (2015). Government health expenditures and economic growth: a Feder-Ram approach for the case of Turkey. International Journal of Economics and Financial Issues, 5(2), 441-447
23. Loto, M. A. (2012). The global economic downturn and the manufacturing sector performance in the Nigerian economy (a quarterly empirical analysis). Journal of Emerging Trends in Economics and Management Sciences, 3(1), 38-45.
24. Madreseh, S. C., Alavijeh, N. K., &Jalaee, S. A. (2018). The impact of government economic policies on labour productivity in selected countries of ECD. International Journal of Management, Accounting and Economics, 5(10), 822-832.
25. Maitra, B., & Mukhopadhyay, C. K. (2012). Public spending on education, health care and economic growth in selected countries of Asia and the Pacific. Is climate change hindering the economic growth of Asian economies? 19(2)
26. Mankiw, G., Romer, D. & Weil, N. (1992). A contribution to the empirics of economic growth. Quarterly Journal of Economics, 107(2), 407-437
27. Matthew, I. A. (2016). Financial allocation to education: Trends, issues and way forward in Nigeria. Educația Plus, 15(1), 227-242.
28. Mawufemor, B., Isaac, Y., & Faisal, M. (2016). What is the effect of Inflation on Manufacturing Sector Productivity in Ghana? MPRA Paper, (75145).
29. Njoku, A. C., Ihugba, O. A., &Idika, N. (2014). Is government capital expenditure productive? Evidence from the Nigerian manufacturing sector (1971-2012). Journal of Educational and Social Research, 4(5), 143
30. OECD, (2021). Public spending on education (indicator). doi:10.1787/f99b45d0-en (Accessed on 15 September 2021)
31. Okeke, T. C. (2020). Productivity in the Manufacturing Subsector: Issues of Income and Employment Generation for Sustainable Development in Nigeria. In: Idowu S., Schmidpeter R., Zu L. (eds). In S. Idowu, R. Schmidpeter, & L. Zu, The Future of the UN Sustainable Development Goals. CSR, Sustainability, Ethics & Governance (83-98). Switzerland: Springer, Cham. doi:10.1007/978-3-030-21154-7_4
32. Olayemi, S. O. (2012). Human capital investment and industrial productivity in Nigeria. International Journal of Humanities and Social Science, 2 (16), 298-307.
33. Olorunfemi, S., Tomola, M. O., Adekunjo, F. O. and Ogunleye, E. O (2013). Manufacturing performance in Nigeria: Implication for sustainable development. Asian Economic and Financial Review, 3 (9), 1195–1213.
34. Oriakhi, D. E., & Ameh, G. (2014). Government expenditure and the development of the education sector in Nigeria: An evaluation. Review of Public Administration and Management, 3(5), 147-160.
35. Oseni, I. O. (2016). Exchange rate volatility and private consumption in Sub-Saharan African countries: A system-GMM dynamic panel analysis. Future Business Journal, 2(2), 103-115. doi:10.1016/j.fbj.2016.05.004
36. Oseni, M. (2012). Adequacy of budgetary allocation to educational institutions in Nigeria. Pakistan Journal of Business and Economic Review, 3(1), 143-157
37. Oyedokun, G. E. (2018). Human capital formation and economic growth in Nigeria. International Journal of Finance & Banking Studies (2147-4486), 7(3), 44-65.
38. Rigolini, J., Lustig, N., Gentilini, U., Monsalve, E., & Quan, S. (2020). Comparative effects of universal basic income: emerging issues and estimates. Exploring universal basic income, 123.
39. Samargandi, N. (2018). Determinants of Labour Productivity in MENA Countries. Emerging Markets Finance and Trade, 54(5), 1063–1081. doi:10.1080/1540496x.2017.1418658
40. Tang, C. F. (2014). The effect of real wages and inflation on labour productivity in Malaysia. International Review of Applied Economics, 28(3), 311-322.
41. UNESCO. (2016). Education for people and planet: creating sustainable futures for all. Global education monitoring report. Paris: UNESCO Publishing.
42. Wijaya, A. (2019). The impact of trade openness on labour productivity: Evidence from Indonesia. National Graduate Institute for Policy Studies.1-18
43. World Development Indicators (2014). Washington D.C: World Bank. Retrieved from https://issuu.com/world.bank.publications/docs/9781464801631www.wikipedia.org/ wiki/government_spending
Published
2024/04/19
Section
Original Scientific Paper
