Government Expenditure and Economic Development in Nigeria
Abstract
The study examined the effect of government expenditure on economic development in Nigeria. To achieve the objectives of the study ex-post facto research design was adopted. Secondary data was used to generate data from CBN statistical bulletin. The data covered from 1990 to 2021. Data was analyzed using error correction regression model. The findings revealed that Government expenditure (capital expenditure, recurrent expenditure) has no significant effect on gross domestic product in Nigeria but no significant effect on per capital income in Nigeria. Based on the findings, the study recommended that public expenditure is an important fiscal instrument; therefore government can use it to control the economy by ensuring that budget allocation towards capital and recurrent expenditure are well utilized for increase in gross domestic product in Nigeria. The study also recommended that government should devise ways of maintaining an effective control to avoid wastage and misappropriation of funds for expenditure purposes. This will help in enhancing per capital income of the country.
Keywords
Government ExpenditureEconomic DevelopmentPer Capital IncomeCapital
References
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