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. 11 NO. 1 2025
DOI: 10.56201/ijebm.vol.11.no1.2025.pg183.195

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Government Expenditure on Education, Health, and Economic Growth in Nigeria

Omolua, Roy Oshiokpekhai (PhD) & Chidum Chibueze Chinda

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Abstract

The study examined the Effect of Government Expenditure on Education, Health and Economic Growth in Nigeria spanning from 1990-2023. The relevant data used were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin. The EViews software was used to analyze data. Philip Perron statistical test was used for the unit root analysis. All the variables tested were stationary after first difference, in other words, all the variables were all I(1). The Johansen co-integration result revealed that there was a long run relationship amongst the series which necessitated the performance of VECM. The findings reveal that in the short run Real gross domestic product (Economic Growth) is positively influenced by the coefficients of government expenditures on education and health but negative in the long run. It was then, recommended that allocation to education and health sectors should always be monitored so as to ensure that such finances are released as at when due and to ensure it is effectively and efficiently utilized. Greater percentage of budgetary allocation should be spent on capital project in education and health sectors. There is the need to urgently redirect both the short run and long run economic policy towards developing the education and health sectors because of their capacity to grow the economy and sustain it into development.

keywords:

Government Expenditure, Education, Health and Economic growth.

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