The Empirical Evaluation of How Public Expenditure Influences Economic Growth in Nigeria

The Empirical Evaluation of How Public Expenditure Influences Economic Growth in Nigeria

Prof. Abomaye-Nimenibo Williams Aminadokiari Samuel Ph.D., M.Sc., B.Sc. Economics, MBA Management and UD, Personnel Management and Industrial Relations, Director of Postgraduate Studies, School of Postgraduate Studies

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The Empirical Evaluation of How Public Expenditure Influences Economic Growth in Nigeria

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Abstract

This study examined government expenditure and economic growth in Nigeria during the period 1985-2015. The specific objective of this study is to investigate how government capital expenditure affects economic growth in Nigeria. Data extracts from the Central Bank of Nigeria (CBN) statistical bulletin form our major source of information. We use the Unit root test using Augmented Dickey-Fuller test technique. Our result revealed that all the variables in the model were stationary at different levels of test. The Johansson co-integration test result also showed that all the variables in the model have a long-run relationship, and government capital expenditure has a positive and significant impact on economic growth in Nigeria. The government recurrent expenditure also has a positive and significant impact on economic growth in Nigeria having a coefficient of determination of 98.4% variation in the dependent variable being explained by changes in the explanatory variables. Based on our findings, we recommend that the government should increase its recurrent expenditure on salaries, transfer payments and its investment spending on education, health, agricultural sectors and the provision of basic infrastructure in terms of construction of roads and bridges.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite This Article

Prof. Abomaye-Nimenibo Williams Aminadokiari Samuel. 2020. \u201cThe Empirical Evaluation of How Public Expenditure Influences Economic Growth in Nigeria\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 20 (GJMBR Volume 20 Issue B2): .

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GJMBR Volume 20 Issue B2
Pg. 53- 67

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification: JEL Code: O47

Submission ReceivedNovember 5, 2020
Peer Review Double Blind
Handling Editor
Accepted December 5, 2020
Published December 15, 2020

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v1.2

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February 24, 2020

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