Impact of government expenditure on nigerian economic growth (1987-2017)

Project Abstract

This study aims to investigate the impact of government expenditure on Nigerian economic growth over the period 1987-2017. Government expenditure is a crucial component of fiscal policy and plays a significant role in shaping the overall economic performance of a country. In the context of Nigeria, a developing economy with a history of fluctuating growth rates, understanding the relationship between government expenditure and economic growth is essential for policymakers to make informed decisions. The research utilizes time series data from 1987 to 2017 to conduct an empirical analysis of the impact of various components of government expenditure on economic growth in Nigeria. The study employs the Vector Error Correction Model (VECM) to examine both the short-run and long-run dynamics between government expenditure and economic growth. By analyzing data on different categories of government spending such as capital expenditure, recurrent expenditure, and social welfare expenditure, the research aims to provide a comprehensive assessment of how government spending influences economic growth in Nigeria. The findings of the study are expected to provide valuable insights into the effectiveness of government expenditure in promoting economic growth in Nigeria. The results will contribute to the existing body of literature on the subject and offer practical implications for policymakers and government officials. Understanding the impact of government expenditure on economic growth can help in designing better fiscal policies that are conducive to sustainable and inclusive growth. Overall, this research seeks to shed light on the relationship between government expenditure and economic growth in Nigeria and provide evidence-based recommendations for enhancing the effectiveness of fiscal policy in driving economic development. By analyzing data over a 30-year period, the study aims to capture the long-term trends and dynamics of government expenditure and its impact on the Nigerian economy. The research findings are expected to be relevant for policymakers, economists, researchers, and other stakeholders interested in understanding the factors influencing economic growth in Nigeria.

Project Overview

<p> 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. While Money Supply and LGDP-I has a positive impact on the dependent variable (GDP). But the GE (Government Expenditure) and M2 (Money Supply) has a significant impact on the model with 2.800 and 0.190 respectively. Also the model shows a good fit at 96% of the dependent variable accounted for by independent variable. <br></p>