Effects of Public Expenditure on Economic Growth in Nigeria

Effects of Public Expenditure on Economic Growth in Nigeria

Author by Dr. Andy Okwu

Journal/Publisher: International Journal Of Management Sciences And Business Research

Volume/Edition: 1

Language: English

Pages: 1 - 15

Abstract

This study has examined the effect of public expenditure on economic in Nigeria for the

period 1970 – 2009. The tool of analysis was the OLS multiple regression model specified on

perceived causal relationship between government expenditure and economic growth. The

major objective of this paper is to analyze the effect of public government spending on

economic in Nigeria based on time series data on variables considered relevant indicators of

economic growth and government expenditure. Therefore, time series data included in the

model were those on gross domestic product (GDP), and various components of government

expenditure. Analysis was based on data extracted from the Statistical Bulletin of the Central

Bank of Nigeria. Results of the analysis showed that capital and recurrent expenditure on

economic services had insignificant negative effect on economic growth during the study

period. Also, capital expenditure on transfers had insignificant positive effect on growth. But

capital and recurrent expenditures on social and community services and recurrent

expenditure on transfers had significant positive effect on economic growth. Consequently,

the study recommended more allocation of expenditures to the services with significant

positive effect.


Other Co-Authors