Fiscal Stimulus and Human Capital in Nigeria: A Bayesian VAR Analysis

Olaniyi Evans

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates the relationship between fiscal stimulus and human capital in Nigeria between 1981-2015 using Bayesian estimation (BVAR model) with a KoKo Minnesota/Litterman prior distribution. Fiscal stimulus is proxied by education expenditure and human capital by school enrolment rates. The findings show that higher fiscal stimulus is associated with higher levels of human capital in Nigeria. It is, however, interesting to note that fiscal stimulus is having an insignificant positive impact on human capital. Education expenditure in the country is not robust enough to support the necessary quanta of human capital with its puny investment in education. It is, therefore, imperative for Nigeria to adopt a strategy which promotes provision of adequate funds for human capital development.

Keywords: Human capital; fiscal stimulus; Bayesian VAR (search for similar items in EconPapers)
JEL-codes: I25 I3 I32 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/123997/1/MPRA_paper_123997.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:123997

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().