EFFECT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA (1987-2017)
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- NGN 3000
ABSTRACT
The work was on the impact of Government Expenditure on Nigeria Growth (1981 – 2010) dealing with secondary data from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics Regression Analysis with (OLS) technique was used. Our findings indicate that there is a positive correlation between Inflation Money SupplyGovernment Consumption Expenditure. Relevant time series data used in the model includes those on gross domestic Product (GDP} and different structures of government. Results of the study show government expenditure has a significant effect on economic growth though the significance is form dependent. i.e. the form of government expenditure considered. Also, capital and recurrent expenditure have significant effect on economic growth but in varying degrees and extent. Finally, it was found out that capital expenditure would have exert positive impact on the level of economic growth but for the issue of corruption and institutional oddity in Nigeria though the intended capital expenditure is indirectly converted to recurrent expenditure somehow which has its own effect on the Economic growth.
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