{"id":4184,"date":"2021-06-13T13:05:20","date_gmt":"2021-06-13T05:05:20","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&#038;p=4184"},"modified":"2023-03-09T14:47:12","modified_gmt":"2023-03-09T06:47:12","slug":"revisiting-government-expenditure-and-private-investment-nexus-an-ardl-approach","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/revisiting-government-expenditure-and-private-investment-nexus-an-ardl-approach\/","title":{"rendered":"Revisiting Government Expenditure and Private Investment Nexus: An ARDL Approach"},"content":{"rendered":"<p><span class=\"fontstyle0\">This paper re-examines the nexus between government expenditure and private investment in Nigeria over the period of 1981-2016. The study is rooted on Jorgenson\u2019s theory of investment, the Samuelson\u2019s version of the flexible accelerator theory and Keynesian-classical crowding-in\/crowding-out theory of investment. The resulting empirical models comprise three equations; one each for private investment (PI), private domestic investment (PDI) and foreign direct investment (FDI). The study employed Autoregressive Distributed Lag technique to estimate the models. From the study, government expenditure showed positive impact on private investment in Nigeria. Our specific findings showed that: Federal government\u2019s capital expenditure (CAEX) showed positive and significant impact on both PI and PDI in the long run: a \u20a6 1.00 billion each increase in CAEX increases PI and PDI by \u20a6 0.12 and \u20a6 0.238 billion respectively. CAEX showed negative but insignificant impact on FDI in both short and long run. State government\u2019s capital expenditure (SCEX) showed positive and significant impact on PI: A \u20a6 1.00 billion increase in SCEX increases PI by \u20a6 0.27 billion. Federal government\u2019s recurrent expenditure (REEX) showed positive and negative impact on FDI and PI respectively: A \u20a6 1.00 billion increase in REEX increases FDI by \u20a6 1.27 billion, and reduces PI by \u20a6 0.28 billion. Our findings imply that, if the objective of government policy is to raise private investment or private domestic investment, then both the Federal Government and state governments should boost their capital expenditure.<\/span><\/p>\n","protected":false},"template":"","tags":[1549,377,1551,1550,177],"jel-code":[],"article-type":[1329],"class_list":["entry","author-jem","post-4184","article","type-article","status-publish","tag-accelerator-theory","tag-ardl-model","tag-crowd-in-out-hypotheses","tag-government-expenditure","tag-investment","article-type-normal-article"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Revisiting Government Expenditure and Private Investment Nexus: An ARDL Approach | Jurnal Ekonomi Malaysia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ukm.my\/jem\/article\/revisiting-government-expenditure-and-private-investment-nexus-an-ardl-approach\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Revisiting Government Expenditure and Private Investment Nexus: An ARDL Approach | Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"og:description\" content=\"This paper re-examines the nexus between government expenditure and private investment in Nigeria over the period of 1981-2016. The study is rooted on Jorgenson\u2019s theory of investment, the Samuelson\u2019s version of the flexible accelerator theory and Keynesian-classical crowding-in\/crowding-out theory of investment. The resulting empirical models comprise three equations; one eachContinue Reading\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ukm.my\/jem\/article\/revisiting-government-expenditure-and-private-investment-nexus-an-ardl-approach\/\" \/>\n<meta property=\"og:site_name\" content=\"Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-09T06:47:12+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@EkonomiJurnal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/revisiting-government-expenditure-and-private-investment-nexus-an-ardl-approach\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/revisiting-government-expenditure-and-private-investment-nexus-an-ardl-approach\\\/\",\"name\":\"Revisiting Government Expenditure and Private Investment Nexus: An ARDL Approach | Jurnal Ekonomi Malaysia\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\"},\"datePublished\":\"2021-06-13T05:05:20+00:00\",\"dateModified\":\"2023-03-09T06:47:12+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/revisiting-government-expenditure-and-private-investment-nexus-an-ardl-approach\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/revisiting-government-expenditure-and-private-investment-nexus-an-ardl-approach\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/revisiting-government-expenditure-and-private-investment-nexus-an-ardl-approach\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Revisiting Government Expenditure and Private Investment Nexus: An ARDL Approach\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"name\":\"Jurnal Ekonomi Malaysia\",\"description\":\"Universiti Kebangsaan Malaysia\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\",\"name\":\"Jurnal Ekonomi Malaysia\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"contentUrl\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"width\":512,\"height\":308,\"caption\":\"Jurnal Ekonomi Malaysia\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\",\"https:\\\/\\\/x.com\\\/EkonomiJurnal\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Revisiting Government Expenditure and Private Investment Nexus: An ARDL Approach | Jurnal Ekonomi Malaysia","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ukm.my\/jem\/article\/revisiting-government-expenditure-and-private-investment-nexus-an-ardl-approach\/","og_locale":"en_US","og_type":"article","og_title":"Revisiting Government Expenditure and Private Investment Nexus: An ARDL Approach | Jurnal Ekonomi Malaysia","og_description":"This paper re-examines the nexus between government expenditure and private investment in Nigeria over the period of 1981-2016. 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