Government Spending and Economic Growth in Nigeria (1980-2011)

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Okoro A. S.
Okoro A. S.
1 EBONYI STATE UNIVERSITY ABAKALIKI NIGERIA

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Using time series data of 32years period , this study investigated the impact of government spending on the Nigerian economic growth. Employing the ordinary least square multiple regression analysis to estimate the model specified. Real Gross Domestic Product (RGDP) was adopted as the dependent variable while government capital expenditure (GCEXP) and government recurrent expenditure (GREXP) represents the independent variables. With the application of Granger Causality test, Johansen Cointegration Test and Error Correction Mechanism, the result shows that there exists a long-run equilibrium relationship between government spending and economic growth in Nigeria. The short-run dynamics adjusts to the long-run equilibrium at the rate of 60% per annum.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Okoro A. S.. 2013. \u201cGovernment Spending and Economic Growth in Nigeria (1980-2011)\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 13 (GJMBR Volume 13 Issue B5): .

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GJMBR Volume 13 Issue B5
Pg. 21- 29
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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July 31, 2013

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Using time series data of 32years period , this study investigated the impact of government spending on the Nigerian economic growth. Employing the ordinary least square multiple regression analysis to estimate the model specified. Real Gross Domestic Product (RGDP) was adopted as the dependent variable while government capital expenditure (GCEXP) and government recurrent expenditure (GREXP) represents the independent variables. With the application of Granger Causality test, Johansen Cointegration Test and Error Correction Mechanism, the result shows that there exists a long-run equilibrium relationship between government spending and economic growth in Nigeria. The short-run dynamics adjusts to the long-run equilibrium at the rate of 60% per annum.

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Government Spending and Economic Growth in Nigeria (1980-2011)

Okoro A. S.
Okoro A. S. EBONYI STATE UNIVERSITY ABAKALIKI NIGERIA

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