Public expenditure and human development in Nigeria in the last decade, composition and distributional impacts
DOI:
https://doi.org/10.17811/ebl.8.2.2019.62-73Resumen
Beyond the country-level impact, this study evaluates public expenditure in Nigeria in the last decade based on composition and distributional impacts on human development at the state-level considering education, health, agriculture and rural development water resources energy, housing and environmental protection. Using data generated from 20 states from 2007-2017, the empirical analysis indicates that the efficacy of education, health, agriculture and rural development and water resources in improving human development is greater than that of energy, housing and environmental protection expenditure. More interestingly, the positive effect of capital expenditure is mitigated by increased recurrent expenditure. The combination of these factors strongly reduces the capability of public expenditure to foster human development. Based on the distributional impact assessment model, education, health, agriculture and rural development and water resources has positive marginal impact while energy, housing and environmental protection has negative marginal impact. Together, these results further advance the case for improving expenditure on the components and sectors that enhances human development. In other words, the public policy plays a great role in human development expenditure in Nigeria.
Citas
Adrian, G & Nadkami, P. O. (2001). Protecting the environment for human development, a four country study: Botswana, Ghana, Honduras and Senegal. ESMAP Technical Paper, March
Alesine, A & Rodrick, D. (1992). Expenditure distribution, political conflict and human development. In: Cukierman, A Hercowitz, Z & Leiderman (Eds). Political Economy, Growth and Business Cycle, Cambridge, MIT Press: 23-50
Arshad, N & Zulklify, M. (1988). Malaysian government expenditure: An analysis of pattern and probable distribution impact on human development, Journal of Economic Analysis, 3 (2)
Beenstock, M, G. Dickinson & Khajaria, S. (1986). The determination of quality of life: An international cross section analysis, Mathematics and Economics, 5
Benerjee, A & Newman, A. (1998), Human welfare and the process of development, Journal of Political Economy 10(2), 274-298
Central Bank of Nigeria (2009), Nigeria’s Development Prospect: Poverty Assessment and Alleviation study. CBN Research Depatment.
Central Bank of Nigeria (2018), Statistical Bulletin, December. Abuja
Ceplan, P. (2004), Human Basic Needs: The Case of Sri Lanka”. World Development, 8 (3).
Chakraborty, L. (2003), “Public Expenditure and Human Development: An Empirical Investigation”. Paper Presented at Wider International Conference on Inequality, Poverty and Human Well-Being, Helsinki, 30-31 May.
Deaton, A (1998), “How well changes in Public expenditure do affect the Chronically Poor. Journal of Political Economy 53 (3), 367
Deaton, A (1990), “Distributional impacts of changes in Government expenditure on Productivity from Survey Data: Extensions of the Indonesian Results”. Journal of Econometrics, Vol. 44 (3).
Deaton A and C Paxson (1998), Distributional impact of Government Expenditure and Poverty: Evidence from Panel Data. Journal of Political Economy 106(5)
Dehlberg and Jakobsson (2005), On the Effects of Different Patterns of Public Expenditure on Consumption. The Review of Income and Wealth, Vol. 23, (1): 385.
Desgupta, P. and M Weale (1992), On Measuring the Quality of Life. World Development 20 (1): 119-131
Desai, M (1991), Human Development: Concept and Measurement. European Economic Review. 35: 359-357.
Deninges, Klaus and Lyn Squire (1996), A new data set for Measuring Quality of Life. World Bank Economic Review, 10
Demery, L. (2003), Analyzing the incidence of Public spending on Well-being”. In: Bourgugnon and L.A. Pereira da Silva (eds). The impact of Economic policies on Poverty and Income Distribution: Evaluation Techniques and Tools, New York: the World Bank and Oxford University Press: 41-68.
Dorssel, D and R, Gounder (1994), Theory and Measurement of Living Level: Some Empirical Results for the Human Development Index. Journal of International Development
Douglas, B. and F. Willem (1996), “Rural Energy in Developing Countries: A Challenge for Human Development”. Annual Review Energy Environment, 21: 499 – 539.
Edeme, R. K., Nkalu, N. C., & Ifelunini, I. A. (2017), Distributional impact of public expenditure on human development in Nigeria, International Journal of Social Economics, 44 (12), 1683-1693, available at https://www.emeraldinsight.com/doi/full/10.1108/IJSE-05- 2016-0152
Emini C.A & Fofack, D. (2004), A financial social accounting matrix for the integrated macroeconomic model for poverty analysis: Application to Cameroon with a fixed- price multiplier analysis, World Bank Policy Research Working Paper, 3210, February
Fakiyesi, O.M. (2001), Encouraging growth to reduce poverty in Nigeria, CBN Economic and Financial Review, 39 (2)
Fan, S. Hazelland, P & Throat, S. (2000), “Linkage between government spending, human development and poverty in rural India, IFPRI Research Report, 110, Washington, D.C.
Fan, S. Zhang, L & Zhang, X. (2002). Growth, inequality and poverty in rural China: The role of public expenditure, IFPRI Research Report, 125, Washington D.C.
Feyzioglu, T., V. Swaroop & Zhu, M. (2000). Modeling the determinant of Human development expenditure in Sub- Saharan African, Journal of African Economy 6, 29-58
Filmer, D & Pritchette, L. (19997). Aggregate human development model, Policy Research Working Paper, 1864
Gordon, S (2008), Analyzing the Patterns of Government Expenditure in Canada. Canadian Public Administration: 101-120
Goulet, Denis (1971), “The Cruel choice: A New Concept in the Theory of Development” Atheum, New York
Hao, E and J. Fan (2001), “Design and Implementation of the Vietnam Human Development Programmes- the ‘Poor’ or the ‘Shocked’?” World Bank Policy Research Working Paper No 2436, Washington, D.C
Haq M.U. (1995), Reflections on Human Development. Oxford University Press, New York.
Harun, M. B Rashid and B. M Azali (2003), “Public Expenditure Impact on Income Distribution in Malaysia”. Singapore Economic Review Vol.34 (2): 33-46.
Herbison, R. and T. Hanushek (1997), “Determinants of Government Expenditure: Evidence from Disaggregated Data”. Oxford Bulletin of Economics and Statistics, 57
Hezelland, R and F. Thorat (2005), The impact of Government Expenditure on Human Development: A Welfare Analysis for India. Journal of Policy Modeling, 13 (3).
Jeff, M. (2007), “Breaking the Stranglehold on Growth. Why Policies Promoting Human Development offer a Better choice for the U.S. Economy”. EPI Briefing Paper, 192, Washington D.C.
Jitsachon, T and D. Methokunavut (2003), The Real Benefits of Thailand’s Public Expenditure of Human Development: Preliminary findings from the Thailand Family Life Survey. RAND Working Paper No. 99-04
Jung, H. S. and E. Thorbecke (2003), “The Impact of Public Expenditure on Human Development and Poverty Reduction in Tanzania and Zambia: A General equilibrium Approach”. Journal of Policy Modeling Vol. 25 (8): 701-725
Kaur, B and S. Misral (2003), Social Sector Expenditure and Human Attainments: An Analysis of Indian States. Reserve Bank of India Occasional Papers. Summer-Monsoon 24 (1-2): 105-145
Keuning, S. and E. Thorbecke (1999), “The Impact of Budget Retrenchment on Income Distribution in Indonesia: A Social Accounting matrix Application”. Working Paper No.3. OECD Development Centre.
Krueger, A. B and M. Lindhal (1999), “Education for Human Development in Sweden and the World”. Working Paper No 7190 NBER, Cambridge.
Lall, S (1998) .”A Cross- Sectional Analysis of Government Expenditure Patterns in Developing Countries”. IMF Working Papers 21 (1)
Levinsohn, J.B. Steven and J. Friedman (2003), “Distributional Impacts of the Indonesian Economic Crises on Household Welfare: Price Changes and the Poor”. The World Bank Economic Review, Vol. 20(2).
Lotz, J.R. (1970), “Pattern of Government Spending in Developing Countries”. The Manchester School of Economics 38 (2).
Maddison. P. R (2008),” Quality of Higher Education and Human Development”. In: Higher Education and Growth. William. E. (Ed) Buston M. a Kluwer Academic Publishers
Martins, A. and W.A. Lewis (2004), “Patterns of Public Revenue and Expenditure in India”. Journal of Economic Vol. 24(2): 26-244
McGillivary M. (1991), “The Human Development Index: Yet another Redundant Composition Development Indicator”. World Development, 19
McGillivary M and H White (1993), “Measuring Development? The UNDP’s Human Development Index”. Journal of International Development 5: 183-192
Mundle, S (1998), “Financing Human Development: some Lesson from Advanced Asian Countries”. World Development, 26 (4): 659-672
Murray, H. (1993), “A Modified Human Development Index”, World Development, Vol. 26(3).
Nasaruddin Arshad and Zulkifly Hj Mustapha (2000), “Malaysian Government Expenditure: An Analysis of Pattern and Probable Distribution Impact”. Journal of Political Economy Analysis, 3(1).
Nigerian Institute of Social and Economic Research (NISER) (2005), “Effectiveness of Public Expenditure in Nigeria” EC-EMACAP/NISER Collaborative Study, June
Pasha, H.A. and M.A. Iqbal (1994), Expenditure Reforms in Pakistan. Pakistan Journal of Applied Economics, Vol. 10 (2): 47 – 75.
Raghbendra, J. , Bagala, B & Urvashi (2000), An Empirical Analysis of Public Expenditure on Education and Health on Poverty in Indian states. Australia South Asia Research Centre, RSPAS, Australia National University, Canberra.
Ranis, G. F and F. Stewart (2002), Strategies for Success in Human Development. Journal of Human Development Vol, 1 (7)
Ray, N.S and M.G Bhattacharaya (1992), An Appraisal of the Methodologies in Data Issues Relating to Human Development Analysis. In: G. K and G.V.S.N Murthy (eds). Human Development in India: Data Base Issues. New Delhi, Vikas Publishing House
Rejani, H and P.E. Zingales (1993), “Assessing Modeling Approaches to the Distributional Effects of Macroeconomic Policy”. Development Policy Review, Vol. 23 (3).
Romer, C.D and D.H Romer (1999), “Government Expenditure and the Well-being of the Poor”. Working Paper No. 6793, NBER, Cambridge.
Sacerdotal, E, S. Brunchwing and J. Tang (1998), “The Impact of Human Development on Economic Growth: Evidence from West Africa” African Development
Sahn, D. E. and S.Younger (1999), Social Sector Expenditures and Human Development in Africa. Working Paper 99/172. Fiscal Affairs Department, International Monetary Fund.
Schmedtje and Lall S. (1968), “A Study of Government Expenditure Pattern in Developing Countries”. The Economic Journal 24, 1-37
Sen, A. K. (1981), Public Action and Quality of Life in Developing Countries. Oxford Bulletin of Economic and Statistics 43 (4): 287-319
Sen, Amartya K (1985), Well-Being, Agency and Freedom: The Dewey Lectures 1984, The Journal of Philosophy, 82 (4): 169-221
Sen, A. K (2000), A Decade of Human Development. Journal of Human Development, 1 (1)
Seers, D. (1989), The Meaning of Development. In: Eleventh World Conference of the Society for International Development. New Delhi
Sheeta, R. and Jagar (2006), Human Development and Long-run Growth. IMF Staff Paper ,Vol. 44 (2).
Shantamyanan D. Vinaya Swaroop and H. Zon (2005). “The Composition of Public Expenditure and Human Devevelopment”. Washington, D.C. 20433, June.
Streeten, P (1995), “Human Development - means and ends” American Economic Review, 8 (2), 232-237.
Stinivasan, T.N. and H. Chanery (1988), Human Development: A New Paradigm or Reinvention of the Wheel?. American Economic Review Papers and Proceedings, 84: 238-243.
Tilak, J.B.G (2002), “Elasticity of changes in Education expenditure on Household welfare in Rural India”. South Asia Economic Journal, 3 (2)
Todaro, M.P. and S.C. Smith (2008), Economic Development (8th Ed). England. Pearson Education
UNDP (1990), Human Development Report, New York: Oxford University Press
UNDP (1994), Human Development Report, New York: Oxford University Press
UNDP (1996), Disaggregated Human Development index within Nigeria. Consultancy Report. UNDP, HDR Office, New York
UNDP (Various Issues), Human Development Report, New York: Oxford University Press
UNDP (2007), “Human Development Network- Measuring Country Performance in Health Selected Indicators for 115 Countries” Washington, D.C: The World Bank Human Development Report New York.
UNDP (2006), “Energizing Human Development: A Review of Energy – Human Development Nexus”. Human Development Strategy Paper.
Van De Welle. (1998), Assessing the Welfare Impacts of Public Spending. World Development, 26 (3)
Vaclcav, S. (2007), Energy and Sustainable Development. UNDP study on Energy, Working Paper
Vos, R. (1982), “Access to Basic needs and Public Expenditure Incidence in Ecuador 1970-1980: The Distribution of Public Services in Rural Infrastructure, Education and Health”. ISSPREALE Working Paper. Institute of Social Studies, Netherlands
Yaari, M. A (1975), “Channeling Trickle–down Approach: Modeling and Simulation of Public Expenditure and Human Development, International Journal of Social Economics, 33 (4)
Descargas
Publicado
Cómo citar
Número
Sección
Licencia
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.