Akhigbe, Eunice O. and Bowale, Ebenezer I.K and Urhie, Ese S and Musa*, Dauda (2023) The Impact of Government Expenditure on Innovation in Nigeria: An Empirical Analysis. Innovations (73). pp. 1510-1521.
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Abstract
Innovation can be considered as something inventive, fresh, and unique. It could also be in the form of renewing or changing the way something has been done in the past. The broad objective of this study is to investigate the long-run impact of government expenditure on innovation in Nigeria; specifically, to examine the long-run effect of both capital and recurrent expenditure on innovation in Nigeria. The study made use of Schumpeter’s Theory of Innovation as an underlying theory for study. The study employed the Johansen cointegration test and error correction model as analytical techniques for this study. The study discovered that there exists a long-run relationship between government expenditure and innovation in Nigeria. The result of error correction modelis negative and significant. It indicates that previous period’s deviation from long run equilibrium is corrected in the current period at an adjustment speed of 2.27%. The coefficient reveals that the speed of adjustment between the short-run and long-run realities of the cointegrating equations is 2.27% in a period. Based on the findings the study recommended that since there is a long-run relationship between innovation and government expenditure, there is a need for government to increase both capital and recurrent expenditure to boost research and development in Nigeria which will have a transmission impact on the economy. The study also recommended the need to innovate both public-private partnership investments in Nigeria.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HJ Public Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Management Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Patricia Nwokealisi |
| Date Deposited: | 20 Feb 2025 14:07 |
| Last Modified: | 20 Feb 2025 14:07 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/18814 |
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