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

Okoro A. S.

Authors

Okoro A. S.

Keywords:

economic growth, government spending, recurrent expenditure, capital expenditure, Nigeria

Abstract

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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How to Cite

Government Spending and Economic Growth in Nigeria (1980-2011). (2013). Global Journal of Management and Business Research, 13(B5), 21-29. https://journalofbusiness.org/index.php/GJMBR/article/view/1031

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