The Impact Of Public Expenditure On Nigerian Economic Growth
ABSTRACT
This study examined the impact of public expenditure on economic growth in Nigeria from 2010-2018. The study aimed to examine the impact of recurrent expenditure on economic growth, the impact of capital expenditure on economic growth and finally examine the impact of government budget on economic growth in Nigeria. Secondary data was employed which was sourced from the CBN statistical bulletin. The study used ordinary least squares (OLS) to analyze our data. Augmented Dickey-Fuller Test was carried out to test the stationary of the data. The test shows that both the explained and explanatory variables used in the model are stationary. Both the dependent and independent variables are all stationary at first difference ie. 1(1) respectively all at 5% significance level. The result of the model estimation suggests public expenditure has a significant impact on Nigerian economy. Any increase in public expenditure brings about increase in real gross domestic product in Nigeria. The study finds out a positive relation between public expenditure and economic growth. The study therefore recommended that the government should ensure proper monitoring, evaluation and implementation of expenditure, disbursal of manpower development.