Demographic Effects on Public Capital Expenditures of Infrastructure Sectors in Rivers State Local Government Areas, Nigeria (2003-2017)
- September 4, 2020
- Posted by: RSIS Team
- Categories: Economics, IJRIAS
International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume V, Issue V, May 2020 | ISSN 2454-6194
Sampson Alele Beals
Department of Quantity Surveying, Rivers State University, Port Harcourt, Rivers State, Nigeria
Abstract: – Capital investments on public infrastructural development are noted to be influenced by demographic factors though mostly not taken seriously by governments. This study is an empirical assessment of the effect of demographic factors on public infrastructure expenditures in Rivers state local government areas (LGAs) infrastructure sectors. It is a time series study (2003-2017) covering the entire 23 LGAs of Rivers state. Secondary data were collected from government public expenditure records, yearly appropriation bill or budgets, national population commission, National Bureau of Statistics, Central Bank of Nigeria Publications, and some research articles; and comprises capital expenditure (capex) of individual sectors and various demographic variables (population, population density, number of households, and per capita revenue). Data analysis was carried out using mainly multiple regression method. At 5 % level of significance, the study reveals that there is significant relationship between capital expenditure and aggregate demographic factors in Rural electrification, Transportation (roads and bridges), and Community development infrastructure sectors only. However, in relation to individual demographic factors, only population density is relating positively with all sector capital expenditures. Thus this study concludes that capital investments of the said infrastructural sectors are the ones sensitive to the LGAs’ demographic demands. With regards to individual demographic variables, population density is a prominent influencer of capital expenditure. The Study recommends among others that at the LGA’s infrastructure sectors level, though noted that there is significant and positive demographic effect on capital expenditure of very few sectors, government should endeavour to spread the gesture to possibly all other infrastructure sectors.
Key words: Capital expenditure, Infrastructure sectors, population, population density, number of households, per capita revenue, budget, local government areas.
