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

2020 ◽  
Vol 13 (3) ◽  
pp. 133 ◽  
Author(s):  
Olukemi I. Lawanson ◽  
Dominic I. Umar
Keyword(s):  
Economic Growth ◽  
Primary Education ◽  
Positive Impact ◽  
Tertiary Education ◽  
School Funding ◽  
Growth Strategy ◽  
Education Expenditure ◽  
Education Expenditures ◽  
Government Education ◽  
The Impact

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.

scholarly journals Government Education Expenditure, Third-party Spillover Effect and Economic Growth in China

2016 ◽  
Vol 9 (2) ◽  
pp. 145 ◽  
Author(s):  
Jiangyi Qi
Keyword(s):  
Economic Growth ◽  
High Education ◽  
Positive Impact ◽  
Spillover Effects ◽  
Third Party ◽  
Education Expenditure ◽  
Spatial Spillover ◽  
Government Education ◽  
Local Economic Growth ◽  
Spatial Spillover Effects

This paper investigates the impacts of government education expenditure on economic growth in China taking into account the spatial third-party spillover effects. After the theretical analyse, a spatial panel estimation model based on the augmented Solow model is applied by using province data in China during 2007 and 2013. The results reveal that (1) In a whole, Government education expenditure in China has significantly positive impact on economic growth, but expenditure in different educational level shows different results. Government education expenditure in below high-education is positive related to local economic growth, whereas the effect of education expenditure in high-education is insignificant. (2) Neighboring government education expenditure shows spatial spillover effects on local economic growth, and spatial spillover effects in two education level is different. (3) Other input factors of third-governmet also have spatial effects. Some policies about education and economic development are proposed. Meanwhile this study recommends that corporation relationship among regions is very important.

scholarly journals Public education expenditure and economic growth: based on panel data from 2009 to 2019 in China

2021 ◽  
Vol 11 (2) ◽  
pp. 184-192
Author(s):  
Yao Liu ◽  
Ziru Tan ◽  
Xiaohua Ning
Keyword(s):  
Economic Growth ◽  
Public Education ◽  
Tertiary Education ◽  
Education Expenditure ◽  
Education Development ◽  
Financial Investment ◽  
Public Education Expenditure ◽  
The Impact ◽  
The Relationship ◽  
Expenditure Structure

Public education expenditure is the largest public expenditure and the foundation of education development in China. This paper uses Cobb-Douglas production function model to analyze the relationship between public education expenditure and China's economic growth, and explores the impact of the proportion of public education expenditure in primary, secondary and tertiary education expenditure on economic growth. The results show that public education expenditure has a positive effect on economic growth, and that secondary education accounts for the largest contribution to economic growth, followed by higher education and primary education. The research results suggest that China should increase financial investment in education and optimize the expenditure structure of three-level education.

How Does Public Debt Affect the Indian Macroeconomy? A Structural VAR Approach

2020 ◽  
Vol 14 (3) ◽  
pp. 253-284
Author(s):  
Ranjan Kumar Mohanty ◽  
Sidheswar Panda
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Public Debt ◽  
Positive Impact ◽  
Decomposition Analysis ◽  
Structural Var ◽  
Adverse Impact ◽  
Mixed Effect ◽  
Domestic Debt ◽  
The Impact

The study investigates the macroeconomic effects of public debt in India during 1980–2017 using a structural vector autoregression framework. The objective is to examine the impact of public debt on the interest rate, investment, inflation and economic growth in India. The results of the impulse response functions show that public debt has an adverse impact on economic growth but a positive impact on the long-term interest rate in the short run and a mixed effect (both negative and positive) on investment and inflation. We also find that domestic debt has a more adverse impact on the economy than external debt. The estimated variance decomposition analysis finds that much of the variation in selected macro variables are explained by public debt and growth in India. This study suggests that public debt especially domestic debt should be controlled and channelled productively to have a favourable impact on the economy. JEL Classification: H63, O40, C40

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

2021 ◽  
pp. 0958305X2110453
Author(s):  
Jaleel Ahmed ◽  
Shuja ur Rehman ◽  
Zaid Zuhaira ◽  
Shoaib Nisar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Latin American ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Supply And Demand ◽  
The Impact

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

scholarly journals Impact of unemployment and income on entrepreneurship in post-apartheid South Africa: 1994–2015

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
Darma Mahadea ◽  
Irrshad Kaseeram
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Employment Growth ◽  
Positive Impact ◽  
Early Stage ◽  
National Development ◽  
Entrepreneurial Activity ◽  
Per Capita Gdp ◽  
Per Capita ◽  
The Impact

Background: South Africa has made significant progress since the dawn of democracy in 1994. It registered positive economic growth rates and its real gross domestic product (GDP) per capita increased from R42 849 in 1994 to over R56 000 in 2015. However, employment growth lagged behind GDP growth, resulting in rising unemployment. Aim and setting: Entrepreneurship brings together labour and capital in generating income, output and employment. According to South Africa’s National Development Plan, employment growth would come mainly from small-firm entrepreneurship and economic growth. Accordingly, this article investigates the impact unemployment and per capita income have on early stage total entrepreneurship activity (TEA) in South Africa, using data covering the 1994–2015 period. Methods: The methodology used is the dynamic least squares regression. The article tests the assertion that economic growth, proxied by real per capita GDP income, promotes entrepreneurship and that high unemployment forces necessity entrepreneurship. Results: The regression results indicate that per capita real GDP, which increases with economic growth, has a highly significant, positive impact on entrepreneurial activity, while unemployment has a weaker effect. A 1% rise in real per capita GDP results in a 0.16% rise in TEA entrepreneurship, and a 1% rise in unemployment is associated with a 0.25% rise in TEA. Conclusion: There seems to be a strong pull factor, from income growth to entrepreneurship and a reasonable push from unemployment to entrepreneurship, as individuals without employment are forced to self-employment as a necessity, survival mechanism. Overall, a long-run co-integrating relationship seems plausible between unemployment, income and entrepreneurship in South Africa.

scholarly journals The Impact of Turning Jordan into an Economic Free Zone on the Flow of Foreign Investments

2018 ◽  
Vol 13 (12) ◽  
pp. 61
Author(s):  
Ahmad Y. Areiqat ◽  
Hanan Ibrahim
Keyword(s):  
Economic Growth ◽  
Civil Wars ◽  
Social Life ◽  
Positive Impact ◽  
Relevant Literature ◽  
Foreign Investments ◽  
Investment Environment ◽  
Free Zone ◽  
Governmental Institutions ◽  
The Impact

Purpose: The purpose of this study is to show that turning Jordan into an economic free zone will lead to a significant increase in foreign investments. This increase, in turn, will lead to an economic growth and to a reduction in the unemployment rate. Jordan is a developing country and any successful investments in the economy sector will have a positive impact on the quality of the social life of its people. This is particularly important now in view of the economic pressure that Jordan is going through as a result of the presence of a huge number of immigrants who have fled the civil wars in neighboring countries.  Methodology: This study has utilized the relevant literature by way of evaluating the benefits of establishing economic free zones in Jordan. Many of the findings are based on analyzing statistical information published by governmental institutions in Jordan. Findings: Jordan offers an attractive investment environment due to the security and stability it enjoys compared with other countries in the Arab region. As such, it has succeeded in establishing new economic free zones through partnership with foreign investors. This has led to a significant increase in the flow of more foreign investments in Jordan. The present study shows that turning the whole of Jordan into an economic free zone will lead to yet a further increase of foreign investments, and hence to more empowerment of the economic sector. Limitations:  The quantitative data available is limited to the years 1999-2007. Value: The findings of this study can be a point of departure for researchers and economic decision-makers in Jordan to prepare economic plans with the purpose of attracting foreign investments and hence promoting economic growth in the country.

scholarly journals EFFECTIVENESS OF FDI, TECHNOLOGICAL GAP AND SECTORAL LEVEL PRODUCTIVITY IN THE VISEGRAD GROUP

2020 ◽  
Vol 0 (0) ◽  
pp. 1-26
Author(s):  
Kamil Makieła ◽  
Liwiusz Wojciechowski ◽  
Krzysztof Wach
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Labour Productivity ◽  
Technological Gap ◽  
Labour Productivity Growth ◽  
Sectoral Output ◽  
Effective Use ◽  
The Impact ◽  
Visegrad Group ◽  
Sample Heterogeneity

The objective of this paper is to investigate the impact of foreign direct investment (FDI) on economic growth and productivity in sectors of the Visegrad Group one decade after their accession to the EU. In order to account for sample heterogeneity, as well as productivity differences, we construct a generalized true random-effects model with varying efficiency distribution. We find that FDI has a positive impact on the Visegrad Group’s sectors and that its effectiveness depends upon the technological gap between the host and home economy. There are three sources of this positive impact: (i) sectoral output and labour productivity growth, (ii) more effective use of input factors, and via (iii) higher efficiency component of the total factor productivity (TFP). These sources form a three-way transmission mechanism through which FDI can impact economic growth conditioned upon FDI effectiveness due to the technological gap.

scholarly journals The impact of education tax and investment in human capital on economic growth in Nigeria

2020 ◽  
Vol 3 (2) ◽  
pp. 77-86
Author(s):  
Abubakar Aminu ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Tertiary Education ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Lag Model ◽  
The Government ◽  
Capital Development ◽  
The Impact

This paper investigated the impact of education tax and investment in human capital on economic growth in Nigeria utilizing the Non-Linear Autoregressive Distributed Lag Model of cointegration covering the period of 25 years from 1995 to 2019. The findings reveal that education tax and investment in human capital have positive and significant effect on the growth of the Nigerian economy over the sampled period. The paper recommends that in order to boost the economy, Nigeria would need to, among other policy frameworks, provide a suitable environment for ensuring macro-economic stability through effective utilization of income from education tax that will encourage increased investment in human capital in the public sector. In addition to income from education tax, for effective and speedy economic growth and development in Nigeria, the government, beneficiaries (students/parents), employers of labor and other stakeholders in the society should share the responsibility for financing primary, secondary and tertiary education, so as to provide a solid foundation for human capital development. However, as revealed in this paper, the contribution of education tax and investment in human capital is most likely to be realized over a long-run period than in the short term. Keywords: Education Tax; Investment; Human capital; Economic growth

scholarly journals HIGHER EDUCATION AND ECONOMIC GROWTH A CASE STUDY OF PAKISTAN

2010 ◽  
Vol 27 (1) ◽  
Author(s):  
Tariq Mahmood
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Positive Impact ◽  
Public Expenditures ◽  
Annual Data ◽  
Unequal Distribution ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Education And Economic Growth

This paper highlights the role of higher education for the economic growth inPakistan. We explore the impact of increase in enrolment at tertiary level on thegrowth rate of income per worker. Estimating a growth model developed byMankiv et. al. (1992), using the annual data of Pakistan, we find a robustrelationship between higher education and economic growth in the long run. Themodel has also shown that investment in fixed capital has positive impact oneconomic uplift. Applying Johansen’s cointegration test, we show that the longrun elasticity of income with respect to capital stock is different from its share inGDP, and increase in the enrolment per unit of effective worker helps inbolstering economic growth. But, like earlier literature we also find statisticallyinsignificant relationship between higher education and GDP per worker. Thereare some fundamental reasons concerning to the ambiguous impact of investingin human capital on economic growth, particularly in the short run in case ofPakistan. First, the sharp increase in enrollment, recently, has been damaging thequality of education. Second, the unequal distribution of educational services hasheld back the efficiency of public expenditures, particularly before the reformsundertaken by higher education commission. Third, the low private return ofeducation has limited the demand for higher education in Pakistan for almost fiftyyears.

scholarly journals Role of Zakat as Social Finance Catalyst to Islamic Banking and Economic Growth

2017 ◽  
Vol 2 (2) ◽  
pp. 55-70 ◽  
Author(s):  
Ai Nur Bayinah
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Islamic Banking ◽  
Annual Data ◽  
Impulse Response Functions ◽  
Islamic Banks ◽  
West Java ◽  
Vector Autoregressive ◽  
The Impact ◽  
Integration Analysis

This paper is aimed to assess the contribution of Zakat in boosting Islamic banks’ financing and economic growth for the period 2011-2015, in 10 district/city of West Java Province, Indonesia. Through Vector Autoregressive (VAR) panel co-integration analysis, variance decompositions (VD) and impulse response functions (IRF), this study investigates Zakat, Islamic Banking, and economic growth nexus. Findings in this research highlight that Zakat has a significant impact on Islamic banking, so this institution would contribute to economic growth both in the short and the long run, with fluctuation in variance from the first year. The results lend support to the view that Zakat not only leads to social benefits but also has a positive impact on the economy through increasing Islamic banks’ financing. Therefore, this research will serve as a motivation for the industry players and regulators to continuously promote Zakat as a strategic policy. The originality of this research is to assess Zakat-led growth and finance by analyzing the impact of Zakat on the Islamic banking and regional economic outcome. Another novel aspect of this study is in the methodology as it employs VAR panel co-integration analysis, VDs and IRFs on the set of annual data. Keywords: Zakat, Islamic Banking Financing, Economic Growth, West Java

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