The Transmission Effects of Government Expenditure on Economic Services on Poverty Level in Nigeria
This study examines the transmission effects of government expenditure on economic services on poverty level in Nigeria between 1986 and 2022. Vector Error Correction Model (VECM) estimation technique was employed to examine the transmission effects of government expenditure on economic services on poverty level. Results from the VECM reveal that the transmission effect of government expenditure on economic services on poverty level in Nigeria was negative but low and that poverty level responded positively to shocks in employment throughout the study period but negatively to economic growth in the long run. This study concludes that government expenditure on economic services has indirect impact on poverty level especially through economic growth in Nigeria but worsens poverty condition in the long run. Based on the conclusion of this study, it recommends that Nigerian government ensure expenditure on economic services in the right quantity, and improve the institutional framework by strengthening various Anti-graft agencies in the country and making them independent of the public office holders in order to minimize corruption.
Keywords: Government Expenditure on Economic Services, Poverty Level, Employment Level, Economic Growth, Nigeria
Citation: Apanisile, P.B.A., Apanisile, O.T., & Abiri, O.G. (2024). The Transmission Effects of Government Expenditure on Economic Services on Poverty Level in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 9(4), 1-14.