IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 7 2024
DOI: 10.56201/ijebm.v10.no7.2024.pg95.113

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Effect of State Governments Expenditures on Economic Resuscitation of Nigeria from 1983-2023

Ojukwu, Ifeoma Stella, Ven. Prof. Onuora Joshua Kenechukwu and David Sunday

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Abstract

The study examined the effect of state government expenditures on economic resuscitation of Nigeria from. The independent variables of this study are government recurrent expenditures and state government capital expenditure, while the dependent variable is real gross domestic product. The study adopted Ex-post facto and experimental research design. The study covered the period of 1983-2023 based on the convenient and systematic sampling techniques. This period is adopted because the duration is considered appropriate because it helps to have robust findings. The study makes use of a secondary source of data (time series data), the data will be collected from CBN statistical bulletin for the period 1983-2023’. The area of the study is Nigeria, as the study focuses on the economic resuscitation economy of Nigeria up to 2023. The Ordinary Least Square Regression Model was developed to test the effect between dependent and independent variables. It was operated using EVIEWS 10. The results of the Ordinary Least Square Model revealed that, state government recurrent expenditure has a positive and significant effect on the real gross domestic product (RGDP) of (P<.5), State government capital expenditure has a negative insignificant effect on the real gross domestic product (RGDP) of (P<.5). In conclusion, both recurrent and capital expenditures by state governments in Nigeria play pivotal roles in boosting the country's economic growth. While recurrent expenditures ensure the smooth functioning of the public sector and immediate economic stimulation, capital expenditures lay the foundation for sustained development and increased productivity. The study recommended that, the ministry of finance should maintain timely and efficient allocation of funds for recurrent expenditures to ensure continuous and effective delivery of public services, which in turn supports economic stability and growth and also, state governments should inc

keywords:

State Government Expenditure, Recurrent Expenditure, Capital Expenditure Economic

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