An examination of public investment’s effect on regional income convergence in Nigeria: Evidence from Kaduna State (2000–2020).
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Background of the study:
Public investment is a pivotal element in reducing regional disparities by promoting infrastructure, education, and healthcare services. In Kaduna State, government spending from 2000 to 2020 has been directed toward bridging the income gap between regions. Investments in transportation networks, social services, and industrial parks are intended to stimulate economic activity and foster income convergence. Recent studies indicate that targeted public investment can enhance regional competitiveness, reduce unemployment, and lead to more balanced economic development (Chinwe, 2023). However, the effectiveness of these investments is often hindered by mismanagement, bureaucratic delays, and uneven allocation of resources (Sani, 2024). The study critically examines the impact of public investment on regional income convergence, assessing both the successes and limitations of such strategies. It considers factors like administrative efficiency, policy coherence, and the socio-economic context to determine how effectively public funds have translated into economic gains. This analysis is essential for identifying best practices and proposing improvements that could promote equitable development across Nigeria.
Statement of the problem:
Despite substantial public investment in Kaduna State, income disparities between regions persist. Inefficiencies in fund allocation, administrative bottlenecks, and regional policy imbalances have prevented the expected income convergence (Chinwe, 2023; Sani, 2024). These challenges result in uneven economic development and persistent regional inequities. This study investigates the factors that undermine the effectiveness of public investment in fostering income convergence and seeks to propose strategic solutions to address these issues.
Objectives of the study:
- To examine the effect of public investment on regional income convergence in Kaduna State.
- To identify the challenges in the effective allocation and management of public funds.
- To propose recommendations for optimizing public investment strategies.
Research questions:
- How does public investment influence income convergence in Kaduna State?
- What are the key challenges affecting the efficient use of public funds?
- What measures can enhance the impact of public investment on regional income levels?
Research Hypotheses:
- Public investment positively contributes to regional income convergence.
- Administrative inefficiencies hinder the effectiveness of public investment.
- Improved fund management practices will lead to more equitable income distribution.
Significance of the study:
This study is significant because it evaluates how public investment can drive regional income convergence, providing insights that can inform future fiscal policies. By highlighting challenges and proposing strategies, the research supports the development of more equitable economic policies that promote balanced regional growth (Sani, 2024).
Scope and limitations of the study:
This study is limited to examining the impact of public investment on regional income convergence in Kaduna State, focusing on policy implementation and regional economic outcomes.
Definitions of terms:
- Public Investment: Government expenditure aimed at improving infrastructure and services.
- Income Convergence: The process by which income disparities between regions decrease.
- Regional Development: Economic growth and improvements occurring at the sub-national level.
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