Economic Analysis of Capital Expenditure and Infrastructural Development in Nigeria

Chukwuemeka Valentine Okolo, Richardson Kojo Edeme and Chinanuife Emmanuel

Journal of Infrastructure Development, 2018, vol. 10, issue 1-2, 52-62

Abstract: Infrastructural development has been the major concern of countries all over the world due to its significant impact in fostering growth. In Nigeria, it has been observed that the level of infrastructure posed serious threat to attaining sustained growth. This study therefore examines the impact of capital expenditure on infrastructural development in Nigeria, utilising time series from 1970 to 2017. The study adopted autoregressive distributed lag (ARDL) model due to the possibility of the past value of the dependent variable explaining its present value, and found that capital expenditure, construction expenditure and non-oil revenue have the potency of accentuating infrastructural development in the long-run but such is being hampered by external debt. The positive effect of recurrent expenditure on infrastructural development is a pointer that bulk of the expenditure in Nigeria over the years is recurrent in nature. These suggest the need to boost non-oil revenue, reduce recurrent and channel external debt into productive infrastructural development.

Keywords: Capital expenditure; infrastructural development; recurrent expenditure; public debt; autoregressive distributed lag model (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0974930618809173 (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:jouinf:v:10:y:2018:i:1-2:p:52-62

DOI: 10.1177/0974930618809173

Access Statistics for this article

More articles in Journal of Infrastructure Development from India Development Foundation
Bibliographic data for series maintained by SAGE Publications ().