IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 6 NO. 1 2020

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Impact of Government Expenditure on Unemployment in Nigeria: Evidence from Social Expenditure.

Ndubueze Ezindu Obisike, Okoli, Uju Victoria, Onwuka, Irene Nkechi AND Mba, Stella Ezinne

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Abstract

Government social expenditures are meant not only to increase human capital but also to reduce employment rate in Nigeria. Statistical evidence has shown that government social expenditures in Nigeria have been increasing yet there are doubts if these have contributed to reduction of unemployment in Nigeria. As a result, this study examined the effect of government social expenditure on unemployment in Nigeria from 1981 to 2016. The study made use of secondary data and employed Ordinary Least Square (OLS) regression method. The results revealed that economically, REXPH, REXPE and CEXPEH did not conform to a-priori expectation. Statistically at individual level, government recurrent expenditure does not have statistical significant impact on unemployment in Nigeria, where as capital expenditure does. Also the overall statistic show that recurrent and capital expenditure on health and education has statistical significant impact on unemployment in Nigeria. From the results, the study therefore conclude that government expenditure on health and education and other social and community activities on both recurrent and capital nature meant to contribute to unemployment reduction Nigeria failed to do so. Hence recommends that Nigerian government should ensure that funds allocated to health, education and other social and community activities are properly utilized.

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