Sectoral Capital Project Performance and Capital Budgeting Allocation in Southwest Nigeria
DOI:
https://doi.org/10.24191/jeeir.v14i2.8666Keywords:
Capital Structure, Project Performance, Budget Allocation, SectoralAbstract
The study evaluates the effects of sectoral capital project performance on capital budgeting allocation in South-West, Nigeria. The study specifically examined the effect of sectoral capital project performance on capital budgeting allocation in South-West State, from 2011 to 2021. The study employed panel data research analysis. The result of the p-value of the Hausman test was less than 5%. Implying that fixed effect was adjudged suitable in explaining the significant effect of the independent variables on the dependent variable at 5% significant level. As such, the study used fixed effect estimates to explain the estimates in the study. This study concludes that states' expenditure on education in South-west States still promotes capital budgeting allocation annually, while states' expenditure on the health sector is poorly funded. Given this, it is recommended that governments in all six states should maintain the current expenditure in education by ensuring that a reasonable amount of funds is budgeted to the sector annually.
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