Asymmetric impact of oil price shocks on government educational expenditure: Evidence from Nigeria

Abstract

This study examines the asymmetric impact of oil prices on government educational expenditure. In the investigation, a Non-linear ARDL approach is put in to use for the period 1990 to 2016. The empirical evidence suggests the presence of asymmetric between oil prices and public educational expenditure. Moreover, a rise in oil prices (positive shock) adds to public educational expenditure in the short run, and the oil prices negative shock retards government educational expenditure significantly in the long run. The rise and drop in oil prices stimulate and decay public educational expenditure. GDP, Net educational tax, Government capital formation, and population total affect public expenditure positively and negatively through the positive and negative shocks. The empirical discovery has brought about a new sight for policymaking in public expenditures and income.