Effects of Government Expenditure on Private Investment in Nigerian Economy (1980–2016)

Taiwo Akinlo and Olusola Joel Oyeleke

Emerging Economy Studies, 2018, vol. 4, issue 2, 147-156

Abstract: This study examined the effect of government expenditure on private investment in Nigeria during the period 1980–2016. The error correction model analysis was used in the study to analyze the relationship between the two variables. The study found that there is a long-run relationship among the variables and that the interest rate and inflation have negative but significant impact on private investment in the long run. On the other hand, government expenditure has positive but insignificant impact on private investment in the long run. In the short run, government expenditure and interest rate have a significant positive impact on private investment in Nigeria, while GDP per capita and inflation negatively impact private investment. The study concluded that there is the need for the government to increase its expenditure particularly on the provision of more infrastructural facilities as this will attract more investment from within and outside the country.

Keywords: Government expenditure; investment; ECM; inflation (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/2394901518795067 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:emecst:v:4:y:2018:i:2:p:147-156

DOI: 10.1177/2394901518795067

Access Statistics for this article

More articles in Emerging Economy Studies from International Management Institute
Bibliographic data for series maintained by SAGE Publications ().