Government Expenditure on Infrastructure as a Driver for Economic Growth in Nigeria

Amadi Kelvin Chijioke and Alolote Ibim Amadi
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Amadi Kelvin Chijioke: Department of Economics, Elechi-Amadi Polytechnic, Port Harcourt, Nigeria
Alolote Ibim Amadi: Department of Quantity Surveying, Rivers State University, Port Harcourt, Nigeria

Journal of International Business Research and Marketing, 2020, vol. 5, issue 2, 20-26

Abstract: This study primary examines the effects of government infrastructural expenditure on economic development in Nigeria. Secondary data sourced from reported annual spending on selected infrastructure and annual Gross Domestic Products were statistically analyzed. The data treatments used for the secondary data were unit root and co-integration tests using Augmented Dickey–Fuller and Phillip–Perron model. Weighted least square was also used to test the sample of 37-year annual time series using vector error correction model. The data analysis was done with descriptive statistics. Findings from the study revealed that government spending on transport, communication, education and health infrastructure have significant effects on economic growth; spending on agriculture and natural resources infrastructure recorded a significant inverse effect on economic growth in Nigeria. An element of fiscal illusion was observed in the government spending on agriculture and natural resources indicating that government is not contributing as much as the private sector in spending on agriculture and natural resources infrastructure in Nigeria.

Keywords: Economic Growth; Government Spending; Infrastructure; Agriculture (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:mgs:jibrme:v:5:y:2020:i:2:p:20-26

DOI: 10.18775/jibrm.1849-8558.2015.52.3004

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