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Capital Expenditure and Economic Development: Implications for Economic Planning in Nigeria

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  • IRIABIJE Alex Oisaozoje

    (Department of Economics, Faculty of Social Sciences, University of Uyo, Ikpa Road, PMB 1017, Akwa Ibom State, Nigeria)

  • ETTAH Bassey Essien

    (Department of Economics, Faculty of Social Sciences, University of Uyo, Ikpa Road, PMB 1017, Akwa Ibom State, Nigeria)

  • NWOSU Nkemjika

    (Department of Economics, Faculty of Social Sciences, University of Uyo, Ikpa Road, PMB 1017, Akwa Ibom State, Nigeria)

Abstract

This study examines capital expenditure and economic development: implications for economic planning in Nigeria from 1990-2020. Specifically, the study seeks to examine the effect of capital expenditure on economic growth as a prerequisite for planning, and to examine the effect of some selected sectors as a tool for planning in Nigeria. The study employs the Autoregressive distributed lag bound (ARDL) technique and descriptive statistics to address the specific objectives. The study reveals that capital expenditure significantly impact economic growth both in the short run and in the long run period. The findings of the sector also revealed that key sectors of the economy such as the manufacturing sectors, the service sector and the agricultural sector are growth enhancing sectors of the Nigerian economy. The study therefore recommends, amongst others, that Nigerian government should block all leakages through which capital expenditure is being mismanaged. Furthermore, the government should be specific in its spending and should ensure that spending plans are directed towards these sectors given that they have untapped potentials for growth stimulation and development of the Nigerian economy.

Suggested Citation

  • IRIABIJE Alex Oisaozoje & ETTAH Bassey Essien & NWOSU Nkemjika, 2023. "Capital Expenditure and Economic Development: Implications for Economic Planning in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 823-837, September.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:9:p:823-837
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    References listed on IDEAS

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    1. Mehare, Abule & Edriss, Abdi K., 2012. "Evaluation of Effect of Exchange Rate Variability on Export of Ethiopia’s Agricultural Product: Case of Oilseeds," Research Theses 157504, Collaborative Masters Program in Agricultural and Applied Economics.
    2. Nyasha Sheilla & Odhiambo Nicholas M., 2019. "The Impact of Public Expenditure on Economic Growth: A Review of International Literature," Folia Oeconomica Stetinensia, Sciendo, vol. 19(2), pages 81-101, December.
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