Government Expenditure, Unemployment and Poverty in Nigeria

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dc.contributor.authorAbdulahiAbiola OLANIYI
dc.date.accessioned2026-10-12T12:24:25Z
dc.date.available2026-10-12T12:24:25Z
dc.date.issued2025-12
dc.description.abstractPoverty remains a major separating factor between the developed and the developing countries of the world. Poverty and unemployment are prominent in Nigeria as they continue to be at the forefront of the biggest challenges facing most of the developing countries. Government expenditure could be of use in curbing the menace of unemployment and poverty. This study investigates the link among government expenditure, unemployment and poverty in Nigeria from 1986-2022, employing both Autoregressive Distributed Lag (ARDL) and Toda-Yammamoto Dolado-Lutkephol (TYDL) approaches. The study decomposed government expenditure into capital and recurrent government expenditures. Using time-series data, the study examines the short and long-run relationship among government recurrent expenditure, government capital expenditure and unemployment, government recurrent expenditure, government capital expenditure and poverty, unemployment and poverty. The study further investigates the causal relationship among government expenditure, unemployment and poverty in Nigeria. The ARDL results show that government recurrent expenditure has negative short-run and a positive long run effects on unemployment in Nigeria. Also, Capital expenditure has no significant effect on unemployment in Nigeria. Government recurrent expenditure significantly reduces poverty in the short-run, while government capital expenditure does not reduce poverty in Nigeria. Unemployment does not have significant short-run or long-run effect on poverty. The TYDL approach confirms that unemployment is granger-caused by poverty, government capital expenditure, and government recurrent expenditure. Also, government capital expenditure is granger-caused by poverty, unemployment, and government recurrent expenditure. Meanwhile, poverty is jointly caused by unemployment, government capital expenditure and government recurrent expenditure though individual impacts are insignificant. There is need for government to prioritize indigenous industries when awarding capital projects in a way that reduces unemployment and poverty. Policymakers also need to re-evaluate the design and execution of capital expenditure programs to directly address the root causes of poverty with better monitoring and evaluation mechanisms to measure the impacts. Keywords: Capital Expenditure, Government Expenditure, Poverty, Recurrent Expenditure, Unemployment. Word Count: 299
dc.identifier.citationKate Turabian
dc.identifier.otherM.Sc
dc.identifier.urihttps://repository.lcu.edu.ng/handle/123456789/1615
dc.language.isoen
dc.publisherLead City University Ibadan
dc.relation.ispartofseriesM.Sc
dc.subjectCapital Expenditure
dc.subjectGovernment Expenditure
dc.subjectPoverty
dc.subjectRecurrent Expenditure
dc.subjectUnemployment.
dc.titleGovernment Expenditure, Unemployment and Poverty in Nigeria
dc.typeThesis

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