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Public Expenditure And Economic Growth In Nigeria

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Abstract

The study examined the impact of public expenditure on economic growth in Nigeria between 1970 and 2014. The study employs the Solow growth model which is specified in Cobb-Douglas form with public expenditure as the factor. To achieve the objective of the study, relevant secondary data were collected from the Central Bank of Nigeria Statistical Bulletin on various years. The result of the regression reveal that capital expenditure on social and community services, past period of gross capital formation, inflation, capital expenditure on social and community services and recurrent expenditure on economic services have positive impacts on economic growth. However, gross capital formation, recurrent expenditure on social and community services and its past period and also total external debt have negative effects on economic growth. Based on the findings, this study recommends that capital expenditure on economic services, gross capital formation, capital expenditure on social and community services should be boosted as they exert positive effects on economic growth. And also a considerable level of inflation should be put in place as it also have positive impact on economic growth.

Suggested Citation

  • Jemeel Adedotun, SANNI,, 2018. "Public Expenditure And Economic Growth In Nigeria," Ilorin Journal of Business and Social Sciences, Faculty of Social Sciences, University of Ilorin, vol. 20(1), pages 148-158, March.
    • Handle: RePEc:ris:ilojbs:0037
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    References listed on IDEAS

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    1. Eric M. Engen & Jonathan Skinner, 1992. "Fiscal Policy and Economic Growth," NBER Working Papers 4223, National Bureau of Economic Research, Inc.
    2. Tajudeen Egbetunde Ismail O. Fasanya, 2013. "Public Expenditure and Economic Growth in Nigeria: Evidence from Auto-Regressive Distributed Lag Specification," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 16(1), pages 79-92, May.
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