By contrast, before COVID-19 struck, the economy was growing at 2.2%. Moreover, there is evidence that terrorism leads to the reallocation of economic activity away from private investment spending to government spending; that is, terrorism crowds out investment at a higher rate than its potential to crowd in government spending. Nigeria military spending/defense budget for 2019 was $1.86B, a 8.95% decline from … Public expenditure, if properly allocated and efficiently used, can have a wholesome effect on the economy. On November 19, I launched my campaign with a 180-page policy document which outlines my plans to get Nigeria working again by turbo-charging economic growth in … on Nigerian Economy and Politics. The economic issue of the day now centers on what measures to take to return the economy to its long-term growth path and reduce the gap between the potential and actual levels of U.S. gross domestic product. capital expenditure for the growth sectors. … Paperback 125 pages. 1, … John P Dunne. This study explores the historical relationship between economic growth and military expenditures in five great power countries: Germany, France,Russia, Japan, and the United States. Government spending or expenditure includes all government consumption, investment, and transfer payments. Same region. Nigeria’s economy is projected by the IMF to shrink by 3.4 per cent after seeing a growth of 2.2 per cent in 2019. The 15 states high-lighted in the map are mainly agrarian economies, representing approximately 47% of Nigeria’s total land mass and 32.5% of its GDP.15 Insecurity in these regions disrupts economic activity, particularly agricultural activities, and slows aggregate out-put growth in the economy. Other specific objectives include; (A) To analyze the trend of recurrent and capital expenditure, as proportions of Gross Domestic Product (GDP) in Nigeria. This research work focuses on the impact of military spending on economic growth with particular reference to Nigeria. 37 Full PDFs related to this paper. military expenditure in Nigerian economy during the period 1970 – 1996. Introduction More so, the result of disaggregated analysis concluded that agriculture, social and community services, health and services are significant variables of government spending contributing to economic growth in Nigeria. Suleiman Abu-Bader, Aamer S. Abu-Qarn Government expenditures, military spending and economic growth: causality evidence from Egypt, Israel, and Syria, … ABSTRACT. Journal of Policy Modeling, 25(6-7): 567-583. conclusions and suggestions for alternative government expenditure policies. China’s Economic Growth and Development China is presently the world’s largest economy in relation to its population of 1.3 billion. Stockholm International Peace Research Institute ( SIPRI ), Yearbook: Armaments, Disarmament and International Security. Military expenditure (% of GDP) - Nigeria. These findings suggest that the government should use tax revenue judiciously to improve infrastructure supporting facilities and thus engender economic growth in Nigeria. The impact on Vietnam’s economy was not as severe as for its neighbors, but real GDP growth still slowed markedly in 2020, falling to 2.9 percent compared to 7 … The impacts of public expenditures on economic growth have been revisited in this paper with respect to capital expenditure, recurrent expenditure and the government fiscal expansion in line with support for the budgetary allocations to various sectors in the context of the Nigerian economy. 9. World military spending rises to almost $2 trillion in 2020 (Stockholm, 26 April 2021) Total global military expenditure rose to $1981 billion last year, an increase of … Military Expenditure, Economic Growth, and Foreign Policy Implications: The Case of Ghana and Nigeria Within the ECOWAS, 1986-2016: 10.4018/978-1-5225-4778-5.ch002: The chapter discusses the nature of the relationship between military expenditure, economic growth, and foreign policy commitments, and the consequences on Over the period 1992 to 2002, annual GDP growth had averaged about 2.25 percent. Abu, Nurudeen and Usman A.(2010). $15.00. None. Military Expenditure in Niger averaged 60.12 USD Million from 1975 until 2020, reaching an all time high of 248 USD Million in 2019 and a record low of 13.50 USD Million in 1982. The importance of mining and quarrying in accelerating the pace of economic growth in Nigeria should rather motivate the government to deregulate and reform the sector. The federal government’s Transformation Agenda recognises private sector development as the main engine for economic growth and includes bold investment reforms. The specific objectives are: 1. Public expenditure involves all the expenses which the public sector incurs for its maintenance for the benefit of the economy ( Anyanwu, 1997 ). Nigeria’s sustained high population growth rate will continue for the foreseeable future because of population momentum and its high birth rate. The “World Military Expenditures and Arms Transfers” (WMEAT) series of publications is designed to be a convenient reference on annual military expenditures, arms transfers, armed forces, selected economic data, and relative indicators consisting of pertinent military-economic ratios. World Bank data shows Nigeria’s annual GDP fell from $568.5 billion in 2014 to $494.6 billion in 2015, $404.6 billion in 2016, $375.8 billion in 2017, and to $397.3 in 2018. expenditure have significant influence on economic growth in Nigeria. 32, No. expenditure on economic growth. The growth in health care expenditures, for better or worse, is not just a government problem: private spending on health care is increasing at broadly the same rates and is eating up a larger and larger share of economic activity. For example, military expenditure can affect an economy either positively as per the finding of Hassan, Waheeduzzaman, and Rahman (2003), through an expansion of aggregate demand or through increase security, and The study found a similar relationship between government spending and economic growth in the country. Preface This report is the result of a study carried out by Wuyi Omitoogun, If the economy were to grow faster, many of the … Government Spending in Nigeria averaged 1083921.92 NGN Million from 2010 until 2020, reaching an all time high of 2339712.81 NGN Million in the second quarter of 2020 and a record low of 609792.40 NGN Million in the fourth quarter of 2017. The authors employed the GMM technique, and discovered that countries with large government expenditure tend to experience higher growth, but the effect varies from one country to another. As one of the continent’s military powerhouses, Nigeria is seeking to strengthen and upgrade the capabilities of its armed forces between 2022 and 2026. This goes against the findings by Benoit and others with respect to the positive effect of defence burden on growth in developing countries. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. Lastly, The small rise in military spending in 1991 and 1992 is due to the Gulf war and the addition of Russia to the sample. Nigeria’s defense budget is expected to grow at a compound annual growth rate (CAGR) of 10.33% throughout the forecast period to reach a peak of US$3.8bn in 2026. Taiwo, M and Abayomi, T (2012). Impact of Government Expenditure on Economic Growth in Nigeria This is nearly three times the level of China’s spending, which is ranked second (see fi gure 2). Defense spending is expected to remain stable in … Olowononi and Aiyedogbon (2008) conducted a study on the trends of defence spending in Nigeria between 1986 – 2006. Nurudeen, A. and U. Abdullahi (2010), "Government expenditure and economic growth in Nigeria, 1970-2008: A disaggregated analysis," Business and Economics Journal, 2010(4): 1-11. This will ... during which military rule persisted for extended periods. an extension of government expenditure on inflation in Nigeria. In the same period, Italy (–16 per cent), the United Kingdom (–12 per cent) and the United States (–4.8 per cent) were the only countries in the top 15 to see their military expend- iture fall. In 2016, total US military expenditure of $611 billion is over one-third (36 per cent) of world military expenditure. Nigeria, in terms of lost GDP per annum, is estimated at 0.82 percent. The data for this research work (Gross Domestic Product, government recurrent expenditure and government capital expenditure) was obtained from the CBN Statistical Bulletin (2015) and analysed using ordinary least squares (OLS) technique. Key Nigeria facts Global Peace thIndex: went up from 142nd to 149 Potential for terrorist attacks: 5 (very high) as a result of events in the North of the Country Violent criminality: improved from 5 (very high) to 3.5 (high) Military spending: 1.5% of GDP, low by international [ Links ] Obreja, L. (2010), "The impact of defense expenditures on economic growth," Romanian Journal of Economic Forecasting, 4: 148-67. The results suggest that there is a positive relationship between military spending and economic well-being in Nigeria. The effect of education expenditure on the level of literacy in Nigeria. The Act has been incorporated in the 2004 compilation of the Laws of the Federal Republic of Nigeria and is listed as the Education Tax Act Cap E4 … Let’s first take a look at the overall growth trends. Wagner argued that a functional, cause […] Education remains the bedrock of growth and development.a people that are educated are prosperous people, and this is also applicable to a nation, and for Nigeria to improve its economy, every Nigerian should be encouraged to access education, at least basic education. Nigeria: military expenditure and economic data, 136 1980–2002 Table A6. (that include share of government civilian expenditures in GDP, military burden, and economic growth) illustrated that military burden has a negative impact on economic growth in all the countries. Nigeria need be developed for the country to become a serious player in the new global economic, social and political order. Inflation was in single digits in 2014, compared to about 12% in 2019. US military spending grew by 1.7 per cent between 2015 and 2016, the fi rst increase after fi ve consecutive years of decline. Despite this slight growth, US military spending remains 20 per cent lower than its peak in 2010. Failure will result in the country recording drastic decline in GDP in the years to come, due to lack of infrastructure to support growth demands. ABSTRACT . Such findings have serious consequences as the United States embarks on a massive government spending initiative. Nigeria's strategic importance as a staging area and supply line during the war effort results in rapid development of airports and military bases, and roads to connect them. 5, July 2014 150 Determine if government expenditure has impact on the development of the education sector. Assess the various education policies in Nigeria and its effect on the development of the education sectorh. The discord as per the effect of military expenditure on security and economic growth, and the rising military expenditure in Nigeria in recent time has been a major concern for researchers and policy makers. In mid-2017, about 1.25 billion people lived in Africa, and Nigeria was the most populous nation on the continent. Military Expenditure, Endogeneity and Economic Growth ... Military Expenditure, Endogeneity and Economic Growth. effect of military expenditure on human capital development in Nigeria covering the period of 1981-2017. The research work explores the impact of government expenditure such as induces economic growth performance in Nigeria. Beşkaya and Menan (2009) examined for the 1970-2005 period for Turkey, democracy showed the uncertainty of economic growth relationship, the relationship between economic growth with economic freedom is positive but not reached a clear conclusion for the impact on In 2016, total US military expenditure of $611 billion is over one-third (36 per cent) of world military expenditure. This paper. The study argues that there is a significant long-run relationship between military expenditure and economic growth in Nigeria, but inverse in the short-run. Benoit, Emile, Defence and Economic Growth in Developing Countries (Lexington, Massachusetts: Lexington Books, 1973). Military expenditures and arms imports were the most obvious indicators of the intensified war effort. These may be positive or negative depending on the specific argument. impact on economic growth, while corporate income tax and custom and excise duty unfavourably affect the positive relationship in the country. Military expenditure (% of GDP) Stockholm International Peace Research Institute ( SIPRI ), Yearbook: Armaments, Disarmament and International Security. Variables such as military expenditure, corruption index as a proxy for institutional quality and growth rate as measure of Nigerian economic growth are included in the model. Defense-Education Expenditure Nexus in Economic Growth of Nigeria: 10.4018/978-1-5225-4778-5.ch017: As defense expenditure in Nigeria has become considerably high, the concern is whether the burden of such expenditure might adversely influence economic Using ordinary least Making Quality Education Accessible And Affordable. This is the first the House will be embarking on such exercise as … Government spending, even in a time of crisis, is not an automatic boon for an economy's growth. Human Capital Development: 32. When the direct and indirect effects are considered military burdens retards economic growth. „Government Expenditure on WA: Microsoft Corporation, 2008. However, Nigeria, lacked comparable statistics over an extended period, preventing generalizations about the service sector. This study presents the impact of military expenditure on economic growth in Nigeria since 1990, multiple linear regressions, the model which used in this study, and expressed the per capita GDP as a dependent variable, and military spending, non-military spending and the real interest rate as independent variables in this model. and military spending and for Turkey does not have a lot of work received. $12.00 20% Web Discount. The major objective of this study is therefore, to ascertain whether there is a relationship between government expenditure and economic growth in Nigeria. In countries with large military outlay, the role of military spending in relation to external debt is important. On the basis of the facts presented in the literature review, empirical investigations were carried out on the effect of military expenditure on human capital development in Nigeria where Military Expenditure (LMEXP) A body of empirical evidence shows that, in practice, government outlays designed to stimulate the economy may fall short of that goal. Defense research and Military Expenditure in Niger decreased to 225 USD Million in 2020 from 248 USD Million in 2019. For instance, in Eniola (2008) study indicates that the relationship between the level of economic growth and defense expenditure in Nigeria between 1977 Benoit (1973) reported that military expenditure exerts a positive external benefit absorbed by the economy. This uncertainty prompted this paper to ask if military expenditure has any effect on security and economic growth in Nigeria and determine whether License : Use and distribution of these data are subject to Stockholm International Peace Research Institute (SIPRI) terms and conditions. A short summary of this paper. To achieve this there is a need for a clear-cut knowledge of existing expenditure trend, student enrolment and linkage with unemployment and economic growth. However, the impact on citizens’ wellbeing is not instantaneous as the variable is only significant after the current year spending; which does not last longer than a year. 3, No. Results are mixed and often contradicting. The country is currently a socialist economy ruled by a Communist Government, with significant structural changes impacting its economy as a result of the high rate of growth over the past decades. “The annual rate of growth of China’s military spending has slowed steadily since it reached a post-2009 high of 9.3 percent in 2013. Aggregates. Review of Public Administration and Management Vol. The study investigates the nexus between military expenditure, institutional quality and Nigerian economic growth between 1984 and 2017. The high government spending and buoyant oil sector appeared to give a temporary boost to the ailing economy as real GDP growth increased to 3.8 per cent in 2000. 2.2 Defense Spending and Economic Growth Defense spending, being a component of fiscal policy, has numerous possible theoretical impacts on the economy. expenditure and economic growth. There is evidence that increase in defence spending will raise the rate of growth in Nigeria only if a partial view of the complex interrelationship is considered. The growth of … The general government fiscal deficit was 4.4% of GDP in 2019, compared to 1.8% in 2014. Redmond, (2011). Military Expenditure in Nigeria increased to 2403 USD Million in 2020 from 1860 USD Million in 2019. source: SIPRI Military Expenditure in Nigeria averaged 1819.34 USD Million from 1960 until 2020, reaching an all time high of 7325 USD Million in 1975 and a record low of 189 USD Million in 1960. increased spending, made possible by a sharp rise in oil prices in 2000. obligation and economic growth in Nigeria. The theories are: Theory # 1. Government Expenditure and Economic Growth: Evidence from the Nigeria Economy (1981 – 2016) 2019 - Advances in Research In-text: (Jeff-Anyeneh and Ibenta, 2019) Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). HA: There is a significant relationship between military expenditure and economic growth in Nigeria. Implications for Economic Growth in „Government Expenditure and Economic Nigeria‟. The linkages between military expenditure and economic growth have been well documented in the literature (see for example, Egwaikhide and Ohwofasa, 2009, Olowononi and Aiyedogbon, 2008), but studies on military expenditure and inflation in sub-Sahara In Saudi Arabia, Abdullah (2000) analyzed the relationship between government expenditure and economic growth. Wagner’s Hypothesis: Adolf Wagner a noted German political economist (1835-1917) pro­pounded an empirical law to analyses and explains the trend in the growth of public expenditure. (An important statistical analysis of military spending and economic growth in 44 developing countries during the period 1950-65, from a modernizing perspective. It can also reduce inequalities in income distribution, if properly designed. Generally, total military expenditure in real terms declined from 1991 until 1998 when it then rose until its peak of 1.739 trillion US dollars in 2011. relation between military expenditure and economic growth subject to controversies. The Anglo-Nigeria Defence Pact was signed in 1958 with the provisions for the establishment of a British Military Base in Nigeria and to train officers of the Armed Forces of Nigeria [AFN]. Variables like recurrent and capital military spending were responsible for the volume of military spending in Nigeria. In 2014, world military spending was 1.69 trillion US dollars. Military expenditure and economic growth: evidence from a heterogeneous panel of African countries. Nigeria has become a top recipient of foreign direct investment in Africa, with inflows having surpassed those to South Africa since 2009. The basic objective of this study will be to empirically examine the impact of government expenditure on economic growth in Nigeria. 2. Although doing exceptionally well in all the economic and social indicators than Pakistan, Nigeria’s economic growth faltered in the last decade but continues to be better than Pakistan. The statistic shows the growth in real GDP in Nigeria from 2016 to 2019, with projections up until 2026. Increasing military expenditure in Nigeria will not only divert the resources from other sectors but the adverse effects of raising military expenditure in developing economy like Nigeria is likely to worsen the existing poverty since almost all the military hardware are imported. Defence and Peace Economics. In fact, studies by (Laudew D, 1986 Barro R, 1991, and foster S, Henrekson M 2001) suggest that large government expenditure has negative impact on economic growth. competition among companies located in different States within Nigeria, as well as competition among States for investors through improvements in the investment climate. Moreover, the causality test within the framework (that include share of government civilian expenditures in GDP, military burden, and economic growth) illustrated that military burden has a negative impact on economic growth in all the countries. Moreover, the causality test within thetrivariate framework is white noise. The world’s military spending grew by 3.6% year-over-year (YoY)—currently the highest rate this decade—to surpass $1.9 trillion in 2019. But the availability of 20 more years of data since the Download PDF. While just 10 countries are responsible for nearly 75% of this amount, the U.S. alone made up the lion’s share with 38% of the global total. To ascertain the impact of government spending on economic growth in Nigeria. Economic Research-Ekonomska Istraživanja: Vol. Nigeria was found to have significant negative impact on economic growth while the interaction between military expenditure and institutional quality also indicates a significant negative impact on Nigerian economic growth. 1. Nigeria’s defense budget for FY2021 is set at US$2.5 bn, registering a negative Y-o-Y growth rate from 2020 of -0.9%. MATERIALS AND METHODS Nigeria Military Spending/Defense Budget - Historical Data Year Billions of US $ % of GDP 2019 $1.86B 0.46% 2018 $2.04B 0.51% 2017 $1.62B 0.43% 2016 $1.72B 0.43% 56 more rows ... between government spending and economic growth. 7. (2019). Abu-Bader S, Abu-Qarn A, (2003).Government Expenditures, Military Spending and Economic Growth: Causality Evidence from Egypt, Israel, and Syria. Obviously, borrowing Government Spending in Nigeria decreased to 1409720.94 NGN Million in the fourth quarter of 2020 from 1889404.68 NGN Million in the third quarter of 2020. [ Links ] Nigeria - Statistics & Facts. The first stage is the period 1950 to 1962, during which growth was based on exporting primary goods. ADVERTISEMENTS: This article throws light upon the top three theories for the analysis of public expenditure growth. Statistics indicate, nevertheless, that services went from 28.9 percent of GDP in 1981 to 31.1 percent in 1988, a period of no economic growth. From the ongoing, it is evident that the studies used augmented Solow growth model exhibited negative association between military spending and growth but … Nigeria’s economic performance in the two decades prior to economic reforms was generally poor. This is the aim of this study. This study examined government expenditure and Nigeria’s economic growth within the sample period of 1981-2015. 2. Until recently, a long-standing, impressively large, and growing literature on the effects of military expenditure on economic growth appeared to have failed to result in a scholarly consensus. defence expenditure and economic growth and its determinants, but the effect of military expenditure on external debt received less attention in Nigeria. Military burdens hamper economic development in Nigeria. Line Bar Map. Government and Economic Growth in Nigeria, 1970-2008: A Disaggregated Analysis. Long-Term Growth Trends2 Analysis of the Peruvian economy growth trends over the past 60 years can be divided into four stages (Figure 1). License : Use and distribution of these data are subject to Stockholm International Peace Research Institute … Nigeria’s population is projected to grow from more than 186 million people in 2016 to 392 million in 2050, becoming the world’s fourth most populous country. Anyanwu (1997) in a study of the effects of taxes on Nigeria’s GDP/Economic Growth (1981-1996) reveal that … The President had written to the House, requesting the screening of the new military top shots. Public expenditure can augment productive capacity of the economy and improve productivity of its working class. Military expenditure can affect economic growth through a number of channels. US military spending grew by 1.7 per cent between 2015 and 2016, the fi rst increase after fi ve consecutive years of decline. This research work tries to examine the impact of government expenditure on economic growth in Nigeria from 1980-2015, using gross domestic product (GDP) as the dependent variable, capital expenditure, recurrent expenditure and inflation as independent variables. 1.5 Scope and Limitations of the Study. Development bank, in order to sustain Nigeria’s current economic growth of 6% / annum, Nigeria has to do more in the area of infrastructure development. Download Full PDF Package. The objectives of this study therefore are to ascertain the growth in government spending and determine the factors that are responsible for the growth in government expenditure since 1999. It is recommended that military expenditure in Nigeria should be moderately reduced Uganda: military expenditure and economic data, 138 1983–2002 Index 141 OUP 3/11/03 16:51 Page viii. Demographic profile. Before the 2016 recession, Nigeria’s economy was growing fast at 6.3%. The Impact of Government Expenditure on Economic Growth in Nigeria. positively associated with growth but military expenditures do not show the significant relationship with growth. Nigeria’s spending on the military was relatively low. President Muhammadu Buhari, 76, a former military ruler running for a second four-year term in this week’s vote, has struggled to jump-start the economy and far from lifting growth to … Most studies on the nexus between military and economy have re-vealed negative empirical findings in the literature.

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