TAILIEUCHUNG - Does public spending affect unemployment in an emerging market?

The Nigerian economy in the last two decades up until 2013 has been growing at an average of 6% and yet unemployment was equally growing in the region of 20% within the same period. This paradoxical situation has led to a flurry of studies and postulations aimed at providing explanation and solution to the phenomenon. This study making use of a regression model with annual data from 1980 to 2013, empirically determined the impact of public sector expenditures (CEXP and REXP) together with private sector investment (PINV) on unemployment (UNEMP) in Nigeria. Capital expenditure and private sector investment both in the medium to long-run were found to serve as catalyst towards reduction of unemployment, while recurrent expenditure was not statistically strong enough to do same. The R-2 () showed that greater proportion of the total variations in UNEMP was brought about by variations in the regressors. Further tests like autocorrelation, hetroscedasticity, specification error, and multicollinearity indicated respectively that there is no presence of autocorrelation hence the model produced a parsimonious result; the variance is constant over time; the link test confirmed by Ramsey reset test suggested there was no specification error; and lastly the variance inflation factor (VIF) of the variables implies that there is no evidence of multicollinearity. The study recommends, inter alia, that the proportion of capital expenditure in Nigerian budget profile should be systematically increased while the recurrent expenditure should be reduced; and there is need to stimulate competition among investors through removal of structural and institutional rigidities and government should design clear policy incentives to private sector investment. | Does public spending affect unemployment in an emerging market?

• Kinh tế học
• Capital expenditure
• Recurrent expenditure
• Private investment
• Domestic capacity
• Conducive environment
• Investment growth
• Determinants of firm’s capital expenditure
• Empirical evidence from Vietnam
• Random Effects Model
• The company’s capital expenditure
• Generalized Method of Moments
• Ho Chi Minh Stock Exchange
• Firm’s capital expenditure
• Managerial accounting
• Lecture Managerial accounting
• Capital expenditure decisions
• Capital budgeting
• Elements of discount rate
• Nominal interest rate
• Direction of causality
• Public expenditure and GDP
• Granger Causality test
• Capital Expenditure to GDP
• Existence of Keynesian hypothesis
• Management accounting
• Lecture Management accounting
• Managing resources
• Analysing capital expenditure proposals
• Internal rate of return
• Management accounting information
• Managing value
• Capital expenditure approval process
• Capital expenditure analysis
• Finance accounting and Auditing
• Digital era
• Firm size
• Free cash flow
• Non financial companies
• Macroeconomic factors
• Operating costs
• working capital
• company valuation
• Project appraisal
• Business finance
• Lecture Business finance
• Capital market
• Financial management
• Project evaluation
• Capital expenditure process
• Financial Statements
• Business Decisions
• Information Technology
• Business Valuation
• Public finance
• Lecture Public finance
• Public expenditure
• Personal income tax
• Haig simons income
• Capital gains
• Personal taxation
• Human capital accumulation
• Labor supply
• Dynamic business environment
• Cost management
• Financial accounting
• Total cost approach
• Support activity costs
• Joint costs
• Target costing
• Cost analysis for pricing decisions
• Investment centers
• Fundamental concepts
• Measuring product costs
• Activity based management
• Financial modeling
• Profit organizations
• Financial reporting
• Special revenue funds
• Expenditure cycle
• Interfund transactions
• Preclosing trial balance
• Capital Projects Funds
• A dynamic business environment
• Flexible budgeting
• Transfer pricing
• Kế toán quản trị
• Costing systems
• Overhead costing
• Activity based costing
• Standard costing
• Variance analysis