Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis

Festus Olalekan Ogunjobi; Adeteji Olusegun Okutimiren; Musa Olanrewaju Oduola

doi:doi:10.11648/j.ebm.20241002.12

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Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis

Festus Olalekan Ogunjobi^*

, Adeteji Olusegun Okutimiren

, Musa Olanrewaju Oduola

Published in European Business & Management (Volume 10, Issue 2)

Received: 25 February 2024 Accepted: 25 March 2024 Published: 26 June 2024

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Abstract

Efficient resource allocation plays an essential role in manufacturing productivity, with a need to assess expenditure efficiency before addressing the impact of education. Amidst global growth in education budgets, financial strain requires improved allocation with a focus on efficiency to mitigate deficits. The manufacturing sector in Nigeria has experienced a consistent decline in productivity and prolonged stagnation over the years, as well as a decrease in capacity utilization. Based on this premise, this study aims to examine the effect of public educational expenditure on the efficiency of resources used in the Nigerian manufacturing sector over the period 1981-2019. The Data Envelopment Analysis is used to estimate the efficiency scores for the years under examination. The results show that, within the DEA estimation of efficiency, public educational capital expenditure does not result in the efficient use of resources for the majority of years under investigation except for the year 2019; only 16 years on public educational recurrence expenditure showed constant returns, and no years showed a decreasing return to scale, compared to the year 1982. The inefficiencies in utilising resources are linked to scale inefficiencies, and the government should target public spending policy to increase the size of capital projects in the education sector.

Published in	European Business & Management (Volume 10, Issue 2)
DOI	10.11648/j.ebm.20241002.12
Page(s)	22-30
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Data Envelopment Analysis, Efficiency, Government Expenditure, Manufacturing Sector, Nigeria

References

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APA Style

Ogunjobi, F. O., Okutimiren, A. O., Oduola, M. O. (2024). Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis. European Business & Management, 10(2), 22-30. https://doi.org/10.11648/j.ebm.20241002.12

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ACS Style

Ogunjobi, F. O.; Okutimiren, A. O.; Oduola, M. O. Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis. Eur. Bus. Manag. 2024, 10(2), 22-30. doi: 10.11648/j.ebm.20241002.12

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AMA Style

Ogunjobi FO, Okutimiren AO, Oduola MO. Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis. Eur Bus Manag. 2024;10(2):22-30. doi: 10.11648/j.ebm.20241002.12

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@article{10.11648/j.ebm.20241002.12,
  author = {Festus Olalekan Ogunjobi and Adeteji Olusegun Okutimiren and Musa Olanrewaju Oduola},
  title = {Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis
},
  journal = {European Business & Management},
  volume = {10},
  number = {2},
  pages = {22-30},
  doi = {10.11648/j.ebm.20241002.12},
  url = {https://doi.org/10.11648/j.ebm.20241002.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20241002.12},
  abstract = {Efficient resource allocation plays an essential role in manufacturing productivity, with a need to assess expenditure efficiency before addressing the impact of education. Amidst global growth in education budgets, financial strain requires improved allocation with a focus on efficiency to mitigate deficits. The manufacturing sector in Nigeria has experienced a consistent decline in productivity and prolonged stagnation over the years, as well as a decrease in capacity utilization. Based on this premise, this study aims to examine the effect of public educational expenditure on the efficiency of resources used in the Nigerian manufacturing sector over the period 1981-2019. The Data Envelopment Analysis is used to estimate the efficiency scores for the years under examination. The results show that, within the DEA estimation of efficiency, public educational capital expenditure does not result in the efficient use of resources for the majority of years under investigation except for the year 2019; only 16 years on public educational recurrence expenditure showed constant returns, and no years showed a decreasing return to scale, compared to the year 1982. The inefficiencies in utilising resources are linked to scale inefficiencies, and the government should target public spending policy to increase the size of capital projects in the education sector.
},
 year = {2024}
}

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TY  - JOUR
T1  - Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis

AU  - Festus Olalekan Ogunjobi
AU  - Adeteji Olusegun Okutimiren
AU  - Musa Olanrewaju Oduola
Y1  - 2024/06/26
PY  - 2024
N1  - https://doi.org/10.11648/j.ebm.20241002.12
DO  - 10.11648/j.ebm.20241002.12
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 22
EP  - 30
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20241002.12
AB  - Efficient resource allocation plays an essential role in manufacturing productivity, with a need to assess expenditure efficiency before addressing the impact of education. Amidst global growth in education budgets, financial strain requires improved allocation with a focus on efficiency to mitigate deficits. The manufacturing sector in Nigeria has experienced a consistent decline in productivity and prolonged stagnation over the years, as well as a decrease in capacity utilization. Based on this premise, this study aims to examine the effect of public educational expenditure on the efficiency of resources used in the Nigerian manufacturing sector over the period 1981-2019. The Data Envelopment Analysis is used to estimate the efficiency scores for the years under examination. The results show that, within the DEA estimation of efficiency, public educational capital expenditure does not result in the efficient use of resources for the majority of years under investigation except for the year 2019; only 16 years on public educational recurrence expenditure showed constant returns, and no years showed a decreasing return to scale, compared to the year 1982. The inefficiencies in utilising resources are linked to scale inefficiencies, and the government should target public spending policy to increase the size of capital projects in the education sector.

VL  - 10
IS  - 2
ER  -

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Author Information

Festus Olalekan Ogunjobi

Department of Economics, Faculty of Social Sciences, Olabisi Onabanjo University, Ago-Iwoye, Nigeria

Contact Email

http://orcid.org/0000-0003-2584-5985
Adeteji Olusegun Okutimiren

Department of Economics, Faculty of Social Sciences, Olabisi Onabanjo University, Ago-Iwoye, Nigeria

Contact Email

http://orcid.org/0000-0003-4965-3072
Musa Olanrewaju Oduola

Department of Economics, Faculty of Social Sciences, Olabisi Onabanjo University, Ago-Iwoye, Nigeria

Contact Email

http://orcid.org/0000-0001-8756-1780

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APA Style

Ogunjobi, F. O., Okutimiren, A. O., Oduola, M. O. (2024). Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis. European Business & Management, 10(2), 22-30. https://doi.org/10.11648/j.ebm.20241002.12

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ACS Style

Ogunjobi, F. O.; Okutimiren, A. O.; Oduola, M. O. Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis. Eur. Bus. Manag. 2024, 10(2), 22-30. doi: 10.11648/j.ebm.20241002.12

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AMA Style

Ogunjobi FO, Okutimiren AO, Oduola MO. Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis. Eur Bus Manag. 2024;10(2):22-30. doi: 10.11648/j.ebm.20241002.12

Copy | Download

@article{10.11648/j.ebm.20241002.12,
  author = {Festus Olalekan Ogunjobi and Adeteji Olusegun Okutimiren and Musa Olanrewaju Oduola},
  title = {Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis
},
  journal = {European Business & Management},
  volume = {10},
  number = {2},
  pages = {22-30},
  doi = {10.11648/j.ebm.20241002.12},
  url = {https://doi.org/10.11648/j.ebm.20241002.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20241002.12},
  abstract = {Efficient resource allocation plays an essential role in manufacturing productivity, with a need to assess expenditure efficiency before addressing the impact of education. Amidst global growth in education budgets, financial strain requires improved allocation with a focus on efficiency to mitigate deficits. The manufacturing sector in Nigeria has experienced a consistent decline in productivity and prolonged stagnation over the years, as well as a decrease in capacity utilization. Based on this premise, this study aims to examine the effect of public educational expenditure on the efficiency of resources used in the Nigerian manufacturing sector over the period 1981-2019. The Data Envelopment Analysis is used to estimate the efficiency scores for the years under examination. The results show that, within the DEA estimation of efficiency, public educational capital expenditure does not result in the efficient use of resources for the majority of years under investigation except for the year 2019; only 16 years on public educational recurrence expenditure showed constant returns, and no years showed a decreasing return to scale, compared to the year 1982. The inefficiencies in utilising resources are linked to scale inefficiencies, and the government should target public spending policy to increase the size of capital projects in the education sector.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis

AU  - Festus Olalekan Ogunjobi
AU  - Adeteji Olusegun Okutimiren
AU  - Musa Olanrewaju Oduola
Y1  - 2024/06/26
PY  - 2024
N1  - https://doi.org/10.11648/j.ebm.20241002.12
DO  - 10.11648/j.ebm.20241002.12
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 22
EP  - 30
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20241002.12
AB  - Efficient resource allocation plays an essential role in manufacturing productivity, with a need to assess expenditure efficiency before addressing the impact of education. Amidst global growth in education budgets, financial strain requires improved allocation with a focus on efficiency to mitigate deficits. The manufacturing sector in Nigeria has experienced a consistent decline in productivity and prolonged stagnation over the years, as well as a decrease in capacity utilization. Based on this premise, this study aims to examine the effect of public educational expenditure on the efficiency of resources used in the Nigerian manufacturing sector over the period 1981-2019. The Data Envelopment Analysis is used to estimate the efficiency scores for the years under examination. The results show that, within the DEA estimation of efficiency, public educational capital expenditure does not result in the efficient use of resources for the majority of years under investigation except for the year 2019; only 16 years on public educational recurrence expenditure showed constant returns, and no years showed a decreasing return to scale, compared to the year 1982. The inefficiencies in utilising resources are linked to scale inefficiencies, and the government should target public spending policy to increase the size of capital projects in the education sector.

VL  - 10
IS  - 2
ER  -

Copy | Download