This study examined the effect of educational expenditure on the growth a Nations economy, case study Nigeria. The main objective of the study were to analyze the positive impact education has on the growth of the Nigerian economy, we focused more on the tertiary sector, although the educational system in the country has been plagued by poor funding, corruption and unqualified teachers in the system.
The data for the study was collected by secondary source and analyzed using chi-square test and other econometric barometric test. The result from the study shows there is a positive relationship between expenditure in education and the growth of the Nigerian economy.
The study concludes that the right expenditure in the educational sector is important in achieving the much needed growth of the Nigerian economy. The study recommends that more needs to be done for the educational sector to grow in the country, the government needs to channel more funds in the nation’s budget for sector to attain growth else the country will experience more drop out of school pupils which will in-turn affect the development of the country’s economy negatively.
Table of Contents
CHAPTER ONE
INTRODUCTION
1.1 Background to the study
1.2 Statement of the Problem
1.3 Research Question
1.4 Objectives of the Study
1.5 HYPOTHESIS OF THE STUDY
1.6 SCOPE OF THE STUDY
1.7 JUSTIFICATION OF THE STUDY.
CHAPTER TWO
LITETRATURE REVIEW
2.0 INTRODUCTION
2.1 CONCEPTUAL LITERATURE REVIEW
2.1. I. Education
2.1. II. Economic Growth
2.1.1 Theoretical Literature Review
2.1.2 Neo- classical growth theory
2.1.3 Endogenous growth model
2.1.4 Growth driven by human capital accumulation
2.1.5 Human capital and technological change
2.2 EMPIRICAL LITERATURE
2.3 GAPS IN THE LITETRATURE
CHAPTER THREE
METHODOLOGY
3.1 THEORETICAL FRAMEWORK
3.1.1 Education and Endogenous Growth
3.2 MODEL SPECIFICATION
3.3 VARIABLE DESCRIPTION AND EXPECTED SIGN
3.4 SOURCES AND METHOD OF DATA COLLECTION
3.5 METHOD OF DATA ANALYSIS
3.6 DATA ACCURACY AND RELIABILITY
3.7 THE JUSTIFICATION OF THE METHOD
3.8 CAUSALITY TEST
CHAPTER FOUR
4.0 DATA PRESENTATION, ANALYSIS AND DISCUSSION OF RESULTS
4.1 INTRODUCTION
4.1.1 Descriptive Statistics
4.1.2 Correlation Matrix
4.2 TIME SERIES PROPERTIES OF THE VARIABLES
4.2.1 Unit Root Test
4.2.2 The effect of educational expenditure on economic growth in Nigeria.
4.2.3 The Long-Run Relationship between Educational Expenditure and Economic Growth.
4.2.4 The Causality between Educational Expenditure and Economic Growth.
4.3 DISCUSSION OF FINDINGS
4.3.1 The Effect of Educational Expenditure on Economic Growth in Nigeria.
4.3.2 The Long-Run Relationship between Educational Expenditure and Economic Growth.
4.3.3 The Causal Relationship between Educational Expenditure and Economic Growth in Nigeria.
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 INTRODUCTION
5.2 SUMMARY OF MAJOR FINDINGS
5.3 RECOMMENDATION
5.4 CONCLUSION
Objectives and Research Themes
The primary objective of this study is to examine the impact of government educational expenditure on the economic growth of Nigeria. It seeks to determine whether public investment in the education sector serves as a catalyst for economic development, considering factors like recurrent and capital expenditure.
- Analysis of the long-term relationship between educational funding and GDP growth.
- Estimation of the quantitative effect of educational expenditure on economic performance.
- Investigation of causal links between government spending on education and economic outcomes.
- Evaluation of human capital development through formal education channels.
- Application of advanced time-series econometrics to assess macroeconomic stability in Nigeria.
Book Excerpt
1.1 Background to the study
Education plays a key role in human capital development. It raises the productivity and efficiency of individuals and thus produces skilled manpower that is capable of leading the economy towards the path of sustainable economic growth or development (Zaman, 2008). Nigeria today has the highest level of out of school children round the world, this indicates that the government has paid little attention to the importance of education to economic growth of a nation.
The world development report (2007) revealed the way knowledge influences development of a nation. The report observes critically the acquisition of knowledge and information is becoming increasingly important to economic growth as science and engineering findings proliferate and take on ever-greater importance in production of goods and services. To Obaji (2006), the responsibility of producing highly quality manpower and specialized goods is that of the nation's tertiary educational institutions. It was stated that in the past well trained manpower emanated from tertiary institutions round the country and they were well sought after both locally and internationally. In the past, Nigerian graduates were hot-cakes abroad as they were requested and absorbed to work for competent organizations, but the case today is different as half-baked graduates come out from the tertiary intuitions in search of jobs instead of creating jobs.
Summary of Chapters
CHAPTER ONE: Provides the research foundation, identifying the low investment in education in Nigeria as a critical problem hindering economic growth and outlining the study's specific objectives and hypotheses.
CHAPTER TWO: Reviews the existing conceptual and empirical literature, connecting growth theories like the Solow and Endogenous growth models to educational spending and human capital development.
CHAPTER THREE: Details the methodological approach, including the structural equation model used for empirical analysis and the specific econometric tests applied to verify data validity.
CHAPTER FOUR: Presents the empirical results, including descriptive statistics, unit root tests, co-integration analysis, and the findings regarding the relationship between education spending and economic growth.
CHAPTER FIVE: Concludes the study by summarizing major findings, suggesting that government educational expenditure has a significant positive long-run impact, and providing policy recommendations.
Keywords
Human Capital Development, Economic Growth, Educational Expenditure, Gross Domestic Product, Endogenous Growth Theory, Nigeria, Macroeconomic Objectives, Public Investment, Time Series Analysis, Causality Test, Tertiary Education, Labour Productivity, Fiscal Policy, Human Capital Accumulation, Long-run Relationship.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on analyzing the impact of government recurrent and capital expenditure on the education sector in Nigeria and its subsequent influence on the country's economic growth.
What are the central themes discussed in this work?
The work explores themes such as human capital development, the correlation between educational attainment and economic growth, public financial policy, and the efficacy of government investments in tertiary education.
What is the primary objective of this study?
The study aims to estimate the effect of educational expenditure on GDP growth and examine the existence of long-run causal relationships between these variables in the Nigerian context.
Which scientific methodology is employed?
The study utilizes standard time-series econometric techniques, including the Augmented Dickey-Fuller Unit Root Test, the Johansen co-integration test, and an Error Correction Model (ECM) to estimate the growth model.
What topics are covered in the main section of the book?
The main sections cover the theoretical framework of endogenous growth, a comprehensive literature review of previous empirical studies, model specification, and detailed data analysis of Nigerian macroeconomic indicators from 1988 to 2018.
Which keywords define this study?
The study is characterized by keywords such as Human Capital Development, Economic Growth, Educational Expenditure, Endogenous Growth Theory, and Time Series Analysis.
What is the specific contribution of this study regarding the Nigerian educational system?
This study bridges a gap in existing literature by focusing specifically on the impact of higher (tertiary) institutions on the growth of the Nigerian economy, whereas many previous studies focused primarily on primary education.
How does the author interpret the relationship between education spending and economic growth?
The author identifies a positive and significant long-run relationship, suggesting that sustained government investment in education is essential for improving labour productivity and achieving economic transformation.
- Citation du texte
- Paul Ukonu (Auteur), 2021, The effect of educational expenditure on economic growth in Nigeria, Munich, GRIN Verlag, https://www.grin.com/document/1160434
