Impact of Government Expenditure on Economic Growth in Nigeria, 1970-2019

Authors

Aluthge Chandana, University of Colombo, Sri Lanka
Jibir Adamu, Gombe State University, Nigeria
Abdu Musa, Gombe State University, Nigeria

Keywords

ARDL, capital expenditure, endogenous growth model, economic growth, recurrent expenditure

Abstract

This study investigates the impact of Nigerian government expenditure (disaggregated into capital and recurrent) on economic growth using time series data for the period 1970-2019. The paper employs Autoregressive Distributed Lag (ARDL) model. To ensure robustness of results, the study accounts for structural breaks in the unit root test and the co-integration analysis. The key findings of the study are that capital expenditure has positive and significant impact on economic growth both in the short run and long run while recurrent expenditure does not have significant impact on economic growth both in the short run and long run. The study recommends that government should increase the share of the capital expenditure especially on meaningful projects that have direct bearing on the citizen’s welfare. Government should also improve the spending patterns of recurrent expenditure through careful reallocation of resources toward productive activities that would enhance human development in the country.

Author Bio

The authors are staff of the University of Colombo, Sri Lanka, and Gombe State University, Nigeria respectively.

Publication Title

CBN Journal of Applied Statistics

Issue

No. 1

Volume

Vol. 12

Recommended Citation

Chandana, Aluthge; Adamu, Jibir; and Musa, Abdu (2024) "Impact of Government Expenditure on Economic Growth in Nigeria, 1970-2019," CBN Journal of Applied Statistics (JAS): Vol. 11: No. 2, Article 6.
Available at: https://dc.cbn.gov.ng/jas/vol11/iss2/6