Saudi Journal of Economics and Finance (SJEF) | Volume-4;-Issue-10
Original Research Article
Oct. 10, 2020
Analysis of the Effects of Total Population Size on Economic Growth in Kenya
Tanui Kiprotich Leonard
Page Numbers : 485-489
DOI : 10.36348/sjef.2020.v04i10.001
Policy makers aim at promoting sustainable economic growth by keeping population growth rate low but there has been a substantial debate on whether population promotes, harms or has no effect on economic growth. Motivated by the divergent views, this study aimed at examining the effects of population change in Kenya on GDP. Using Time-series data for the period 1963 - 2013, this research examined the co-integration relationship between GDP growth rates and total population, unit root was tested using Augmented Dickey-Fuller, Co-integration test using Johansen’s Multivariate test and Granger causality test conducted to show the causality between the variables. The findings showed that for a unit increase in total population, there is rise of 2.221% in GDP. Its recommended that the Government needs to further promote investment level so as to increase job opportunities to utilize the population of the country.
Original Research Article
Oct. 16, 2020
Investment in Education and Health: Lessons for the Growth Potentials in the COVID-19 Era
Ubong E. Effiong
Page Numbers : 490-495
DOI : 10.36348/sjef.2020.v04i10.002
The negative effect of the Covid-19 pandemic on the growth potential of the economy, as it affects the health and educational sector serves as an inspiration for this paper to examine the effect of government expenditures on education and health on the economic growth of Nigeria. The study utilized data from the Central Bank of Nigeria statistical bulletin, World Development Indicators, and the Nigeria Centre for Disease Control (NCDC). The dependent variable was gross domestic product, while the explanatory variables include gross fixed capital formation, labour force, and government expenditure on education, government expenditure on health, broad money supply, inflation rate, and exchange rate. The data were analysed using the Bounds test for cointegration and error correction mechanism to investigate both the short run and long run relationship. The Bounds test revealed the existence of a long run relationship between government expenditures on education and health and economic growth. Further, the error correction model revealed that both government expenditures on education and health exert positive and significant effect on economic growth both in the short run and in the long run. The coefficient of the error correction term (0.5833) indicates that 58.33% of the short run disequilibrium is corrected annually. The paper concludes by stating that Nigeria needs to invest massively on the education and health sector so as to make provisions for the necessary infrastructures that could be required for their smooth operations in this period of global pandemic and beyond.