Disaggregated Government Spending on Infrastructure and Poverty Reduction in Nigeria

1
Kemisola Osundina
Kemisola Osundina
2
Osundina
Osundina
3
C. K.
C. K.
4
Ebere
Ebere
5
Chidinma & Osundina
Chidinma & Osundina
6
O.A
O.A
1 BABCOCK UNIVERSITY, OGUN STATE, NIGERIA

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This study examined the relationship between government spending on infrastructure and poverty reduction in Nigeria. Per capita income was used to proxy poverty reduction, government spending on infrastructure was proxied by; government spending on building and construction, government spending on transportation, government spending on education and government spending on health. Time series data of 43 years were employed and Augmented Dickey Fuller unit root test showed that the variables were not stationary at level but were stationary at first difference the order of integration was I(1). The lag length as selected by Vector Autoregressive model was one. Vector Error Correction model showed that there was a long run relationship between government spending on infrastructure and poverty reduction in Nigeria. The regression result showed that government spending on building and construction has a positive and significant effect on poverty reduction in Nigeria, while government spending on transportation has a negative and significant effect on poverty reduction. The effect of government spending on education and health were insignificantly negative and positive respectively. It is recommended that the government of federal republic of Nigeria should increase spending on building and construction as poverty reduction responds to it brilliantly well.

35 Cites in Articles

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

Kemisola Osundina. 2014. \u201cDisaggregated Government Spending on Infrastructure and Poverty Reduction in Nigeria\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 14 (GJHSS Volume 14 Issue E5): .

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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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September 19, 2014

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This study examined the relationship between government spending on infrastructure and poverty reduction in Nigeria. Per capita income was used to proxy poverty reduction, government spending on infrastructure was proxied by; government spending on building and construction, government spending on transportation, government spending on education and government spending on health. Time series data of 43 years were employed and Augmented Dickey Fuller unit root test showed that the variables were not stationary at level but were stationary at first difference the order of integration was I(1). The lag length as selected by Vector Autoregressive model was one. Vector Error Correction model showed that there was a long run relationship between government spending on infrastructure and poverty reduction in Nigeria. The regression result showed that government spending on building and construction has a positive and significant effect on poverty reduction in Nigeria, while government spending on transportation has a negative and significant effect on poverty reduction. The effect of government spending on education and health were insignificantly negative and positive respectively. It is recommended that the government of federal republic of Nigeria should increase spending on building and construction as poverty reduction responds to it brilliantly well.

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Disaggregated Government Spending on Infrastructure and Poverty Reduction in Nigeria

Osundina
Osundina
C. K.
C. K.
Ebere
Ebere
Chidinma & Osundina
Chidinma & Osundina
O.A
O.A

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