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Public Expenditure And Inclusive Growth In Nigeria

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Abstract

Nigeria has recorded tremendous and steady rise in public spending and economic growth over the years. However, the rates of poverty and unemployment are on the increase. This raised public concern on the inclusiveness of Nigeria’s economic growth. This paper therefore examined: (i) the inclusiveness of Nigeria’s economic growth; and (ii) the impact of public expenditure on inclusive growth in Nigeria. The paper used secondary data for the period between 1960 and 2012. Principal Component Analysis was used to compute the inclusive growth index, while time series regression analysis was used for the second objective. The results showed that only the impact of state governments’ expenditure was significant at 10 percent. However, expansionary fiscal policy could undermine inclusive growth if it triggers to inflation. Also, the results suggested that excessive trade openness could inhibit the inclusiveness of the growth process.

Suggested Citation

  • Yaru, M.A. & Mobolaji, H.I. & Kilishi, A. A. & Yakubu, A.T., 2018. "Public Expenditure And Inclusive Growth In Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 5(5), pages 46-61, June.
    • Handle: RePEc:ris:ilojep:0042
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    References listed on IDEAS

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    1. Usman A & Mobolaji H. I & Kilishi A. A & Yaru M. A & Yakubu T. A, 2011. "Public Expenditure And Economic Growth In Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 1(3), pages 104-113.
    2. Rahul Anand & Mr. Saurabh Mishra & Mr. Shanaka J Peiris, 2013. "Inclusive Growth: Measurement and Determinants," IMF Working Papers 2013/135, International Monetary Fund.
    3. World Bank, 2014. "World Development Indicators 2014," World Bank Publications - Books, The World Bank Group, number 18237, December.
    4. Aladejare, Samson Adeniyi, 2013. "Government spending and economic growth: evidence from Nigeria," MPRA Paper 43916, University Library of Munich, Germany.
    5. World Bank, 2013. "World Development Indicators 2013," World Bank Publications - Books, The World Bank Group, number 13191, December.
    6. Hur, Seok-Kyun, 2014. "Government Spending and Inclusive Growth in Developing Asia," ADB Economics Working Paper Series 415, Asian Development Bank.
    7. Usman.A & Mobolaji H. I & Kilishi A.A & Yaru M. A & Yakubu, T. A, 2011. "Public Expenditure And Economic Growth In Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 1(3), pages 104-113, September.
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    Cited by:

    1. Stephen Taiwo Onifade & Savaş Çevik & Savaş Erdoğan & Simplice Asongu & Festus Victor Bekun, 2020. "An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-13, December.
    2. Friday Ebong & Fidelis Ogwumike & Udeme Udongwo & Olumide Ayodele, 2016. "Impact of Government Expenditure on Economic Growth in Nigeria: A Disaggregated Analysis," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(1), pages 113-121.
    3. Bashir Olayinka Kolawole, 2016. "Government Spending and Inclusive-Growth Relationship in Nigeria: An Empirical Investigation," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 19(2), pages 33-56, November.
    4. Ekor, Maxwell & Adeniyi, Oluwatosin, 2014. "Government Spending and Economic Growth: A Revisit of the Nigerian Experience," MPRA Paper 107840, University Library of Munich, Germany.
    5. Mohd Arshad ANSARI & Faraz KHAN & Manish Kumar SINGH, 2021. "Public expenditure and economic development: New evidence from the BRICS-SAARC-ASEAN region," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(627), S), pages 155-174, Summer.
    6. Mohammed Aminu Yaru, 2022. "Budget transparency and internal revenue mobilisation at sub-national government level: evidence from Nigeria," Public Sector Economics, Institute of Public Finance, vol. 46(4), pages 505-531.
    7. Ocheni S.I., 2018. "Empirical Examination of the Effects of Government Spending on the GDP Growth Rates of Nigeria," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 9(3), pages 26-31, September.

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    More about this item

    Keywords

    Public Expenditure; Inclusive Growth; Nigeria;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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