ABSTRACT

The study investigated effect of public expenditure on economic growth of Nigeria. It used ex-post factor research design and engaged time series data extracted from CBN statistical bulletin 2016 for the period 1999-20 16. Based on the nature of the data, the augmented dickey-fuller unit test was conducted and the result established that the variables are stationary and integrated. The ordinary least squares based simple regression analysis was adopted and found that there is significant effect of government capital expenditure on real gross domestic product of Nigeria, the effect of government recurrent expenditure on real gross domestic product of Nigeria is significant the test concludes that the study hence confirms that there is long run equilibrium relationship between public expenditure and economic growth of Nigeria therefore, the study recommends that government should increase its capital expenditure and judiciously embark on projects that would boost economic growth and government should curtail recurrent expenditure on administration and increase the capital expenditure so as to enhance economic activities.