Effect Of Government Expenditure On Economic Growth In Nigeria

                                                                 ABSTRACT

This study examined the effect of Government Expenditure on Economic Growth of Nigeria for the period 2002 to 2016. Time series data for the fifteen (15) years period was sourced from Central Bank of Nigeria Statistical Bulletin and Ordinary Least Square (OLS) multiply regression technique was used to estimate the parameter. Real Gross Domestic Product, proxy for economic growth is adopted as the dependent variable while Total Recurrent Expenditure and Total Capital Expenditure constitute the independent variables. The result of the study showed that the Government Capital Expenditure has a positive and insignificant impact on the economic growth of Nigeria for the period under study, while recurrent expenditure was positive and significant. In view of this, it was recommended amongst others that government should allocate more of its resources to the priority sectors of the economy such as agriculture and industry as well as to infrastructure development, in order to encourage growth of the economy.    

TABLE OF CONTENT

Cover page                                                                                                  i

Title page                                                                                                    ii

Declaration                                                                                        iii

Dedication                                                                                                  iv      

Certification                                                                                      v

Abstract                                                                                                      vi

Table of content

CHAPTER ONE                                                                                                

INTRODUCTION

1.1       BACKGROUND TO THE STUDY                                                         1 

1.2       STATEMENT OF THE PROBLEM                                                       3

1.2       OBJECTIVE OF THE STUDY                                                     4

1:3.      RESEARCH QUESTION                                                              4

1.4       RESEARCH HYPOTHESES                                                                  4

1.5       SCOPE OF THE STUDY                                                              5

1.6       SIGNIFICANCE OF THE STUDY                                                          5

CHAPTER TWO

REVIEW OF RELATED LITERATURE                                                6

2.1 Conceptual framework                                                                       6

2.1.1Concept of government expendituree                                       6

2.1.2 TYPE OF GOVERNMENT EXPENDITURE                                            7

2.1.3 HOW GOVERNMET EXPENDITURE IS AFFECTED BY DIFFERENT FACTOR                                                                                                           8

2:1.4   OVERVIEW OF ECONOMY GROWTH                                                9

2.1.5 SOME ESSENTIAL CONDITIONS FOR STRONG ECONOMIC GROWTH                                                                                                           10

2.2 THEORETICAL FRAMEWORK                                                                 13

2.2.1 Musgrave theory of public expenditure                                            13

2:2:2 Endogenous growth model                                                               13

2.2.3 Economic Growth Theories                                                               14

2.3. Empirical Review                                                                                15

CHAPTER THERE

RESEARCH METHODOLOGY                                                              19

3:1. Research Design                                                                                  19.

3:2 Area of study                                                                                       19

3:2 Area of study                                                                                       20

3:4. Model   specification                                                                           20

CHAPTER FOUR

PRESENTATION OF DATA, ANALYSIS AND DISCUSSION                        22

4.1     Presentation of Data                                                                         22

4.2     Data Analysis and Discussion of Results                                          22

4.2     Descriptive Statistics                                                                        23

4.3     Regression Analysis                                                                         24

4.3.1  Discussion of Findings and Hypotheses Testing                               25

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS                                                                                                                     26

5.1     Summary of Findings                                                                      26

5.2     Conclusion                                                                                       26

5.3     Recommendations                                                                            26

APPENDIX                                                                                                          27

REFERENCES                                                                                         30