Martins Iyoboyi, Latifah Musa-Pedro, Okereke Samuel Felix and Hussaina Sanusi
This paper examines the impact of fiscal constraints on education expenditure in Nigeria from 1981 to 2021, using annual time series data.
Abstract
Purpose
This paper examines the impact of fiscal constraints on education expenditure in Nigeria from 1981 to 2021, using annual time series data.
Design/methodology/approach
The study deployed cointegration techniques with structural breaks.
Findings
Cointegration was found between education expenditure, debt servicing (a proxy for fiscal constraint) and associated variables. In both the long and short run, debt servicing negatively and significantly impacts education expenditure. While government revenue has a positive and significant impact on education expenditure in the long and short run, political institution has a negative and significant impact in the long run. Political institution is thus critical to education financing in Nigeria. The impact of debt is positive and significant in the short run, but not significant in the long run. There is a unidirectional causality from debt servicing to education expenditure.
Practical implications
Political institutions are critical towards contracting only productive debts and checkmating the adverse political environment through political will that prioritizes education financing.
Originality/value
The study extends the empirical literature on the fiscal constraint-education expenditure first by investigating fiscal constraint-education expenditure nexus given the institutional environment, and second by extending the methodology using cointegration techniques in the midst of structural breaks.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2022-0682.
Details
Keywords
Informed by the literature on regional security and fragile states, ‘new regionalisms’, and natural resources and violent conflict, this essay investigates the challenges of…
Abstract
Informed by the literature on regional security and fragile states, ‘new regionalisms’, and natural resources and violent conflict, this essay investigates the challenges of state-building in West Africa. These range from the influence of diasporas and subregional strongmen to flows of small arms and light weapons (SALWs) and lootable natural resources. The analytical framework that links patron–client networks and lootable natural resources is applied to the cases of Sierra Leone and Côte d’Ivoire. In recent years, strategies by African leaders to co-opt subregional strongmen as part of patronage networks have failed. The essay finds that an ossified state presence and the erosion of a leader's influence enables subregional strongmen to gain control over valuable natural resources, such as diamonds. The essay then assesses the impact of the Kimberley Process Certification Scheme (KPCS) on state-building, concluding that although international regimes like the KPCS can increase state capacity and thereby counter the deleterious effects of state failure, they are not sufficient state-building tools. Hence, the KPCS must be supplemented through a combination of more explicit state-building initiatives under the auspices of bilateral government donors, aid agencies, diasporas and transnational and local NGOs.