The relationship between public expenditures, inflation, and economic growth in Nigeria

Název práce: The relationship between public expenditures, inflation, and economic growth in Nigeria
Autor(ka) práce: Paul, Kehinde Samuel
Typ práce: Diploma thesis
Vedoucí práce: Brůna, Karel
Oponenti práce: Šíma, Ondřej
Jazyk práce: English
Abstrakt:
Public expenditure and inflation are two viable macroeconomic variables at the disposal of policymakers to drive the economy. However, the manner in which these tools are employed can either engender or impede the growth of the economy. Thus, the study investigated the contributions of public expenditure and inflation to the economic growth of Nigeria between 1980 and 2022. The study used GDP as the measure of economic growth and disaggregated public expenditure into government capital expenditure (LGCE) and recurrent expenditure (LGRE). The dynamic ARDL model estimator was utilized to analyze the dataset after checking cointegration using the bound test. The bound revealed that cointegration exists between economic growth, public expenditure, and inflation in Nigeria. The findings from the DARDL regression showed that government capital expenditure has a negative and significant impact on the economic growth of Nigeria in the short and long run, but government recurrent expenditure has a positive and significant impact on the economic growth of Nigeria, both in the short run and the long run. Inflation exacted a negative and significant impact on economic growth in Nigeria, both in the short run and the long run, while the exchange rate remained volatile, thereby impeding the growth of the economy in the short run and long run, but the money supply enhanced economic growth in Nigeria, as indicated by the short- and long-term results. The study therefore recommends, among other things, that price control mechanisms be put in place to encourage domestic production and reduce imports.
Klíčová slova: Recurrent Expenditure; Capital Expenditure; Inflation; Economic growth; Public Expenditure; Nigeria; Autoregressive Distributed Lag (ARDL)
Název práce: The relationship between public expenditures, inflation, and economic growth in Nigeria
Autor(ka) práce: Paul, Kehinde Samuel
Typ práce: Diplomová práce
Vedoucí práce: Brůna, Karel
Oponenti práce: Šíma, Ondřej
Jazyk práce: English
Abstrakt:
Public expenditure and inflation are two viable macroeconomic variables at the disposal of policymakers to drive the economy. However, the manner in which these tools are employed can either engender or impede the growth of the economy. Thus, the study investigated the contributions of public expenditure and inflation to the economic growth of Nigeria between 1980 and 2022. The study used GDP as the measure of economic growth and disaggregated public expenditure into government capital expenditure (LGCE) and recurrent expenditure (LGRE). The dynamic ARDL model estimator was utilized to analyze the dataset after checking cointegration using the bound test. The bound revealed that cointegration exists between economic growth, public expenditure, and inflation in Nigeria. The findings from the DARDL regression showed that government capital expenditure has a negative and significant impact on the economic growth of Nigeria in the short and long run, but government recurrent expenditure has a positive and significant impact on the economic growth of Nigeria, both in the short run and the long run. Inflation exacted a negative and significant impact on economic growth in Nigeria, both in the short run and the long run, while the exchange rate remained volatile, thereby impeding the growth of the economy in the short run and long run, but the money supply enhanced economic growth in Nigeria, as indicated by the short- and long-term results. The study therefore recommends, among other things, that price control mechanisms be put in place to encourage domestic production and reduce imports.
Klíčová slova: Recurrent Expenditure; Capital Expenditure; Inflation; Public Expenditure; Economic growth; Nigeria; Autoregressive Distributed Lag (ARDL)

Informace o studiu

Studijní program / obor: Finance and Accounting
Typ studijního programu: Magisterský studijní program
Přidělovaná hodnost: Ing.
Instituce přidělující hodnost: Vysoká škola ekonomická v Praze
Fakulta: Fakulta financí a účetnictví
Katedra: Katedra měnové teorie a politiky

Informace o odevzdání a obhajobě

Datum zadání práce: 3. 6. 2023
Datum podání práce: 15. 4. 2024
Datum obhajoby: 12. 6. 2024
Identifikátor v systému InSIS: https://insis.vse.cz/zp/84687/podrobnosti

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