¬Government Spending In Education And Human Development Index In Nigeria
Obayori Joseph Bidemi
Institute Of International Trade And Development, University Of Port Harcourt, Nigeria
Akpan Joe Itah
Institute Of International Trade And Development, University Of Port Harcourt, Nigeria
Keywords: Capital, Catalyst, Development Index, Education, Government spending, Human
Abstract
The study examined government spending in education and human development index in Nigeria from 1990-2020. The objectives of the study were to; examine the effect of government capital and recurrent expenditure in education sector on human development index (HDI) in Nigeria. Annual data were collected from CBN statistical bulletins and World Development Index (WDI). The main technique of analysis is the parsimonious error correction method (PECM). Meanwhile, the technique of Augmented Dickey Fuller (ADF) unit root test was used to ascertain the order of integration of the variables before the variables were subjected to the PECM. The empirical results showed that; government capital expenditure in the education sector has positive and significant impact on HDI. Government recurrent expenditure in the education sector has positive but insignificant impact on HDI. The study concluded that, improved HDI in terms of better standard of living and improved literacy level is a function of increase capital spending in the education sector as against the recurrent expenditure. Based on the findings, the following recommendations were made:- Government education spending in Nigeria, should be skewed towards capital component rather than the usual recurrent component. This is because; capital expenditure will help to facilitate better human development index, if they are tailored towards infrastructural development. Government recurrent expenditure in the education sector should be well utilized in prompt payment of workers salary and remuneration. This will serve as a catalyst for improved output.