AN EMPIRICAL ANALYSIS OF GOVERNMENT EDUCATION EXPENDITURE AND LABOUR PRODUCTIVITY IN NIGERIA
1A.S. Ngutsav & 2Bridget M. Akaakohol
1Department of Economics, Benue State University, Makurdi,
2College of Education, Katsina-Ala
E-mail: ngutsavayila@gmail.com, mlumunbridgetakaakohol@gmail.com
ABSTRACT
This study examined the relationship between government expenditure on education and labour productivity in Nigeria covering the period of 1980 to 2015. The study was anchored on the theory of human capital theory. Autoregressive Distributed Lag (ARDL) model was used for the analysis since some variables incorporated in the model were stationary at level while others were integrated at first difference at 5% critical level. It was found that there is long run and short run positive relationship between government expenditure on education and labour productivity in Nigeria. The study therefore recommends that the Nigerian government should step-up budgetary allocations to the education sector in line with UNESCO threshold of 26% of the total budget for the developing countries.
Keywords: Autoregressive Distributed Lag (ARDL) model, Government Expenditure, Human Capital and Labour Productivity
