An Examination of the Impact of Public Spending on Poverty Reduction in Nigeria

Dr. Abdulhadi Ibrahim and Salisu Umar
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Dr. Abdulhadi Ibrahim: Department of Economics, Umar Suleiman College of Education, Gashua Yobe State Nigeria
Salisu Umar: Department of Economics, Aminu Saleh College of Education, Azare Bauchi State Nigeria

International Journal of Research and Innovation in Social Science, 2021, vol. 5, issue 11, 456-461

Abstract: The study investigates the impact of public spending on poverty reduction in Nigeria using time series data from 1980-2019.Vector Autoregressive (VAR) model has been used to achieve the objectives of this study. The cointegration test reveals there is long run relationship among the variables used in the study. The normalized cointegration result further reveals that government total expenditure has significant impact on poverty. GDP and private investment have positive effects on poverty while inflation has negative impact on poverty. The study recommendations include the following among others: embezzlement of public funds and corruption should be tackled, GDP should be fairly dist ributed for it to have impact on poverty and measures should be put in place to curb inflationary pressure. Lastly unnecessary expenditures should be shortened and focus should be on expenditure that increases economic growth and reduces poverty.

Date: 2021
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