IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 8 2024
DOI: 10.56201/jafm.v10.no8.2024.pg345.361

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A Disaggregated Analysis of Government Sectorial Expenditure on Economic Growth in Nigeria

Madueke, Obianuju Patricia, Ven. Prof. Onuora, J.K.J and Emeneka, Ogochukwu Lynda

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Abstract

The study investigated a disaggregated analysis of government sectorial expenditure on economic growth in Nigeria within a period of 35years spanning (1987-2023). Data collected were from the Central Bank of Nigeria (CBN) Statistical Bulletin, where government expenditure on agriculture, government expenditure on health, government expenditure on education as the independent variables and real gross domestic product as the dependent variable. Multivariate model was developed in this analysis and Ordinary Least Square (OLS) regression analyze was used for the analysis, The Unit root test, co-integration approach and error corrections model were used for the analysis. It was also revealed from the result of our estimated model that government expenditure on education has a positive and insignificant impact on the Nigerian economy. It was also discovered that government expenditure on health has a positive and significant impact on the Nigerian economy. It was also discovered that government expenditure on agriculture has a positive and significant impact on the Nigerian economy. The study recommend that CBN should do more to encourage borrowing by bringing the lending rate to single digit to boost agricultural production in the rural settings.

keywords:

government expenditure, economic growth, government expenditure on agriculture,

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