ABSTRACT
The
study examined the impact of public expenditure on economic growth of Nigeria
for the period 1980-2019. Data were
sourced from the Central Bank of Nigeria statistical Bulletin. Real gross domestic product proxy for
economic growth was adopted as the dependent variable while government
recurrent expenditure on administration, education, health, economic services,
transfers as well as government capital expenditure on social and community
services and economic services were the independent variables. The Augmented Dickey-Fuller unit root test
was employed to test the stationarity of the variables. The Johansen Co-integration test was also
carried ot to test the long-run relationship of the variables. The result showed that there existed a
long-run relationship among the variables in the study. The Vector error correction model was also
adopted in data analysis. The empirical
results showed that recurrent expenditures on administration had a negative and
significant impact on economic growth in Nigerian in both the long-run and
short-run; recurrent expenditures on education had positive and significant
impact on economic growth in the long-run and a positive and insignificant
impact on the short-run; recurrent expenditures on health had a positive and
significant impact on economic growth in the long-run but a positive and
insignificant impact in the short-run; recurrent expenditure on economic
services had positive and significant impact on economic growth in the long run
and short-run; recurrent expenditures on transfers had positive and significant
impact on economic growth in the long-run but a negative and significant impact
in the short-run; capital expenditure on social and community services had a
negative and significant impact on economic growth in the long-run and
short-run and lastly, capital expenditure on economic services had a positive
and significant impact on economic growth in` the long-run but a positive and
insignificant impact in the short-run.
The study therefore recommended, amongst others, that government should
increase its expenditure on administration especially in the area of security
and internal defense and utilize them effectively and efficiently in order to
improve the enabling environment on which Nigerians carryout their daily
activities; government should adequately fund the educational and health
sectors of the economy and at the same time ensure effective utilization of
funds in these sectors to improve the welfare and productivity of their
workforce, thus encouraging growth of the economy. These measures would adequately enhance
economic activities of Nigeria which would in turn, induce growth in the
Nigerian economy.
MICHAEL, U (2023). Public Expenditure And Economic Growth Of Nigeria. Mouau.afribary.org: Retrieved Dec 23, 2024, from https://repository.mouau.edu.ng/work/view/public-expenditure-and-economic-growth-of-nigeria-7-2
UNIVERSITY, MICHAEL. "Public Expenditure And Economic Growth Of Nigeria" Mouau.afribary.org. Mouau.afribary.org, 27 Jun. 2023, https://repository.mouau.edu.ng/work/view/public-expenditure-and-economic-growth-of-nigeria-7-2. Accessed 23 Dec. 2024.
UNIVERSITY, MICHAEL. "Public Expenditure And Economic Growth Of Nigeria". Mouau.afribary.org, Mouau.afribary.org, 27 Jun. 2023. Web. 23 Dec. 2024. < https://repository.mouau.edu.ng/work/view/public-expenditure-and-economic-growth-of-nigeria-7-2 >.
UNIVERSITY, MICHAEL. "Public Expenditure And Economic Growth Of Nigeria" Mouau.afribary.org (2023). Accessed 23 Dec. 2024. https://repository.mouau.edu.ng/work/view/public-expenditure-and-economic-growth-of-nigeria-7-2