Explore publications.

This paper investigates whether government consumption becomes more growth-enhancing after institutional capacity crosses a minimum level in North Africa. Government consumption is a narrower measure than total public expenditure and excludes some capital spending and transfers. A panel of Algeria, Egypt, Libya, Mauritania, Morocco, Sudan, and Tunisia for 2003–2024 is assembled from the World Development Indicators and Worldwide Governance Indicators. The empirical design profiles candidate threshold values separately for government effectiveness and control of corruption in a dynamic common-factor panel model. It enforces a 15% minimum regime share and uses all 128 country-level Rademacher sign assignments for wild-cluster threshold tests. Candidate breakpoints occur at −1.336 for government effectiveness and −1.267 for corruption control. Conditional spending-growth slopes are larger above both candidates, but the threshold tests do not reject linearity (p = 0.217 and p = 0.388). Cutoffs and regime slopes also move substantially when Libya or Sudan is excluded, when the five-country core is used, and across alternative time windows. H1–H3 are therefore not supported: the evidence does not identify a stable institutional minimum at which public consumption reliably changes its growth effect. Policy should improve specific expenditure-conversion mechanisms rather than treat sample-specific governance breakpoints as targets.

This paper investigated the impact of tax revenue on private domestic investment in Nigeria from 1980 to 2018 using the modified ordinary least squares- Autoregressive distributed lag (ARDL). The paper used oil revenue, non-oil revenue, and Corporate Income Tax (CIT) as the independent variables while Private Domestic Investment (PDI) is the dependent variable. Oil revenue and non-oil revenue were used as a proxy for oil and non-oil tax. These data were obtained from secondary sources- central Bank of Nigeria, World Bank database and Federal Inland Revenue service statistical bulletin. The result showed that a long-run relationship exists between the aforementioned variables. Also, the paper revealed that oil and non-oil do not have a significant impact on PDI but CIT has a positive and significant impact on PDI. The paper recommends that proper measures/reforms should be put in place in order to reduce the impact of tax on private domestic investment in Nigeria.