An assessment of effectiveness of public sector financial management in Nigeria: A country policy and institutional approach
Keywords:
Human Development Index, Gross Domestic Product per capita, Country Policy & Institution Assessment, Public Financial Management Quality
Abstract
In the sphere of Public Sector Financial Management, research attention is gradually shifting from growth in sizes of input and output (efficiency) to quality of input and social welfare outcomes (effectiveness) in line with elements of sustainable development goals (SDGs 2030). In this paper, the authors investigate public sector financial management effectiveness in Nigeria in terms of how the more relevant goals of human development, and economic output per capita have been influenced. Relying mostly on country policy and institutional assessment variables, developed by the World Bank for some eligible developing nations, the authors adopted ex post facto design to collect relevant data for the period 2009 to 2018. The generalized method of moment was used to analyze the data and make necessary inferences. A key result of the analysis is that while marginal growth in economic output per capita appears to have been achieved using government expenditure, human development has not been positively impacted. Also, most policy and institution quality variables proved to have potential to improve both growth and development outcomes, but their declining performance rating appeared to rob the country of desired positive development outcomes.
References
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World Bank (2020), World Development Indicators Database, Retrieved December 22, 2020 from https://data.worldbank.org/indicator
Amah P N (2020), An Evaluation of Influence of Infrastructure on Economic Growth, Life Expectancy, and Death Rate in Nigeria, Unilag Journal of Humanities, 8 (1), 1 - 16
Afonso A & D Furceri (2010), Government Size, Composition, Volatility and Economic Growth, European Journal of Political Economy, 26(4), 517 – 532
Ageli M (2013), Does Education Expenditure promote Economic growth in Saudi Arabia? An Econometric Analysis, International Journal of Social science Research, 1(1), 1 – 10
Amit K & B Debroy, (2019), GDP is not a measure of Human Wellbeing, Harvard Business Review, A paper presented on Economic Development at the Harvard Business School on October 4, 2019. Available at http://hbr.org/2019/10/gdp-is-not-a-measure-of-human-well-being.
Aschauer D (1989), Is Government Spending Productive? Journal of Monetary Economics, 23, 103 – 125
Auerbach A (2010), Public Finance in Practice and Theory, CESifo Economic Studies, 56(1), 1 - 20
Barrios S & S Andrea (2008), The Quality of Public Finances and Economic Growth, European Economy Economic Paper 337 (Directorate General for Economic and Financial Affairs Publication)
Barro R (1990), Government spending in a simple model of Endogenous growth, Journal of Political Economy, 98. 103 - 125
Barro R (1991), Economic Growth in a cross section of Countries, Quarterly Journal of Economics, 106(2), 407 - 443
Brousseau E & J Glachant (2002), The Economics of Contracts: Theories and Applications, New York, Cambridge University Press
Buiter W (1980), Walras law and all that: Budget Constraints and Balance Sheet Constraints in period models and continuous time models, International Economic Review, 27, 1 - 16
Eid G & L Awad (2017), Government Expenditure and Public Sector Growth in Saudi Arabia: A Markov Switching Model analysis, Economic Issues Journal, 22(2), 83 – 104
Fisayo F & G Adeoye (2019), Africa’s Human capital Development: Is public finance management an effective strategy? Journal of Social Economic Research, 6(2), 61 - 73
Fischer S (1993), The role of macroeconomic factors on growth, NBER Working Paper 4565
Ghura D & M Hadjimichael (1995), Growth in Sub-Sahara Africa, IMF Working Paper, Issue 136
Jevons S (1871), The Theory of Political Economy, London, MacMillan & Co
Kouzmin A, Loffler E, Klages H & Korac-Kakabadse N (1999), Benchmarking and Performance Measurement in Public Sectors: Towards learning for Agency Effectiveness, International Journal of Public Sector Management, 12(2), 121 – 144
Mandl U, Dierx A & F Ilzkovitz (2008), The effectiveness and efficiency of public spending, EuropeanEconomy Economic Paper, number 301(Brussels: Economic Commission)
Montes G, Bastos J &A De-Oliveira (2019), Fiscal Transparency, government effectiveness and government spending efficiency: Some International Evidence based on panel data approach, Economic Modelling, 79, 211 – 225
Musgrave R (1959), The Theory of public Finance: A Study in Public Economy, New York, McGraw Hill
Odior S and Alenoghena R (2014), Public Sector Financial Management and Output Growth in Nigeria: A Predictive Causality Test and two stage least Squares Approach, Journal of Economic and Financial Studies, 2(1), 1-13
Payne J & B Ewing (1996), International Evidence on Wagner’s Hypothesis: A Cointegration Analysis, Public Finance, 51(2), 258 – 274
Prakash T & E Cabezon (2008), Public Financial Management and Fiscal Outcomes in Sub-Saharan African Heavily-Indebted Poor Countries, International Monetary Fund Working Paper Series WP/08/217
Rajkumar A & V Swaroop (2002), Public Spending and Outcomes: Does Governance Matter? World Bank Policy Research Working Paper, 2840
RayP G & N Van-De-Sijpe (2007), Measuring and Explaining Government Efficiency in Developing Countries, The Journal of Development Studies, 43(2), 360 - 381
Stewart F (2013), Capabilities and Human Development: Beyond the individual – the critical role of social institutions and social competencies, Human Development Report Office Occasional Papers, Number 3.
Szarowska I (2016), Quality of Public Finance and Economic Growth in the Czech Republic, Silesian University School of Business Administration, EconPapers, Number 30.
Wagner A (1890), Finanzwissenchaft, as translated in Musgrave R. & A. Peacock(eds) (1952), Classics in the Theory of Public Finance, London, MacMillan
Walras L (1874), Elements D’Economie Politique Pure, ou, Theorie de la Richesse Sociale, as translated in Jaffe W(ed) (1954), Elements of Pure Economics or Theory of Social wealth, London, Allen and Unwin
Wei W, Shang Y, Zhou X & B Wen (2020), Correlation study on environmental performance of Chengdu and Economic Development, IOP Conference Series on Earth and Environmental Science, 546: 032012. Doi:10.1088/1755-1315/546/3/032012
World Bank (2018), Poverty and Shared Prosperity 2018: Piecing together the Poverty Puzzle,Washington D C: World Bank. License: Creative Commons Attribution C C BY IGO. Doi:10.1596/978-1- 4648-1330-6
World Bank (2019), Country Policy and Institutional Assessment (CPIA) Africa 2018: Strengthening Debt Management Capacity. www.documents.worldbank.org/curated/en/738411564512831828/Country- Policy-and-Institutional-Assessment-CPIA-Africa-2018-strengthening-Debt-Management-Capacity
World Bank (2020), World Development Indicators Database, Retrieved December 22, 2020 from https://data.worldbank.org/indicator
Published
2022-01-22
How to Cite
AMAH, P. N., & OKPALA, P. O. (2022). An assessment of effectiveness of public sector financial management in Nigeria: A country policy and institutional approach. Global Journal of Accounting, 7(2), 99-111. Retrieved from http://gja.unilag.edu.ng/article/view/1394
Section
Articles
