The Rising Government Expenditure in Nigeria: Any Influence on Growth?

Segun Subair Awode

The European Journal of Applied Economics, 2019, vol. 16, issue 2, 95-108

Abstract: This study attempts to examine whether government expenditure in Nigeria has had any influence on growth in the economy. The study focuses primarily on capital and recurrent types of government expenditure, and these were regressed against the real gross domestic product. Secondary time series data ranging from 1981 to 2016 obtained from the CBN Statistical Bulletin were used. Having established that the series were co-integrated in the long run through the Cointegration technique of Johansen, the study then used the error correction and Granger causality techniques to achieve its objectives. Results indicated that recurrent expenditure exerts a significant positive influence on real GDP, while the influence of capital expenditure on real GDP turned out negative. The Granger causality test revealed that both capital and recurrent expenditures Granger cause real GDP. The study, therefore, advocates for a strong monitoring and evaluation system of the way in which government funds, especially those intended for capital projects, are being used, so as to bring about a meaningful influece on the economy.

Keywords: capital expenditure; economic growth; error correction mechanism; Granger causality; gross domestic product (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.singidunum.ac.rs/files/2019-16-2/t ... luence-on-growth.pdf (application/pdf)
https://journal.singidunum.ac.rs/paper/the-rising- ... -influence-on-growth (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:sng:ejae01:114

DOI: 10.5937/EJAE16-20251

Access Statistics for this article

More articles in The European Journal of Applied Economics from Singidunum University, Belgrade
Bibliographic data for series maintained by EJAE Editorial Office ().