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Government Infrastuctural Spending and Economic Growth in Nigeria

Author

Listed:
  • Uju Victoria Okoli

    (Economics, Nnamdi Azikiwe University Awka Anambra state Nigeria)

  • Ebele Stella Nwokoye

    (Economics, Nnamdi Azikiwe University Awka Anambra state Nigeria)

  • Ifeoma Rita Ezedebego

    (Economics, Nnamdi Azikiwe University Awka Anambra state Nigeria)

Abstract

The Nigerian government has consistently increased spending without a corresponding improvement in the country’s economic growth trajectory. Using Hirschman’s approach, this study investigated the impact of government spending on economic growth in Nigeria, analyzing annual data from 1970 to 2020. The study utilized data from the CBN Statistical Bulletin to examine government’s spending in the transport, communication, health, education, and utilities sectors. An autoregressive distributed lag model was employed, and the results indicate a positive but non-significant short-term effect of communication and utility sector spending on Nigeria’s economic growth. However, there was a negative but non-significant short-term effect of transportation, health, and education sector spending on Nigeria’s economic growth. Thus, the study recommends that the government increase expenditure on the highlighted sectors, as well as the agricultural and petroleum sectors, which are areas where Nigeria is highly endowed. This approach will enable the country to achieve infrastructural development and positively impacting economic growth.

Suggested Citation

  • Uju Victoria Okoli & Ebele Stella Nwokoye & Ifeoma Rita Ezedebego, 2023. "Government Infrastuctural Spending and Economic Growth in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 457-469, May.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:5:p:457-469
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    References listed on IDEAS

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