Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Public Expenditure and Economic Growth in Nigeria

Etoko Martins E. PhD & Igisi Isaac T. PhD

Abstract

This study investigated the relationship between public expenditure and economic growth in Nigeria within 1999 and 2021 fiscal years. Capital expenditure proxied the predictor variable; public expenditure. The criterion variable economic growth; was measured in terms of gross domestic product, human development index, and unemployment rate. The study adopted the inter-relationship descriptive research design. The population for the study consisted of 23 fiscal years, out of which; a sample of 20 years was drawn. Secondary data used for analysis was sourced from Aaron (2021), MicroTrend (2021), CBN Statistical Bulletin (2020), National Bureau of Statistics (NBS), and from other sources. Data was analyzed in descriptively and inferentially. The study found that capital expenditure has insignificant positive relationship with gross domestic product; moderately significant but negative relationship with human development index; and has strongly significant negative relationship with unemployment rate. It was observed that inflation exerts insignificant influence in the relationship between public expenditure and economic growth in Nigeria during the study period. The study recommended among other things, that; government policy makers should ensure the presence of national goal unification both in state and federal government expenditure.

Keywords

Public ExpenditureStructureEconomic GrowthHuman DevelopmentUnemployment rate

References

Aaron, O. (2021). Unemployment rate in Nigeria 2020 Statista. https://www.statista.com>... Abdul, M. H., Ganaie, A. A., & Kamaiah, B. (2016). Wagner's hypothesis: An empirical verification. Sage Journals. https://doi.org/10.1177/22779752216667095 Adams, R. A. (2004). Public sector accounting and finance made simple (3rd ed). Sunray Books Limited. Afza, M., & Abbas, Q. (2010). Wagner's law in Pakistan: Another look. Journal of Economics and International Finance, 2(1), 12-19. Agbakwuru, J. (2019). FG. spends #279 bn on N-Power. Vanguard Newspaper, July 13. https://www.vanguardngr.com>... Ahiauzu, I. A., & Asawo, P. S. (2016). Advance social research methods. CIMRAT Publications. Ahmed, A., Hussain, A., Yusrin, L., Abbas, Z., & Karimulla, M. (2020). The impact of total investment, real export and government spending on economic growth in Pakistan. https://www.researchgate.net>3405... Ahuja, D. S.,& Pandit, D. (2020). Public expenditure and economic growth: Evidence from the developing countries. SAGE Journals. https://doi.org/10.1177/23197145zo938901 Ajayi, I. E. & Edewusi, D. G. (2020). Effect of public debt on economic growth of Nigeria: An empirical investigation. International Journal of Business and Management Review, 8(1), 18-38. Akinpelu, Y. (2020). Nigerian government plans to spend #400 billion on N-Power, November Trademoni, others.... Premium Times, 14. https://www.premiumtimesng.com>... Aladejare, S. A. (2013). Government spending and economic growth: Evidence from Nigeria. MPRA Paper No. 43916. University Library of Munich, Germany. https://mpra.ub.uni-muenchen.de/43916/ Alison, M., & Fiona, M. (1998). The social consequences of unemployment. https://library.bsi.org.au>jspui Amadeo, K. (2020). What is frictional unemployment? https://www.thebalance.com Ashworth, D. (2015). Economic growth: why is it important? https://finance.yahoo.com>news Barbara, D., Klaus, W. Z. (2006). Some second thoughts on Wagner's law. Discussion Paper No. 54. University of Federal Armed Forces, Hamburg. https://ideas.respec.org>spr>euhchp BBA MANTRA (2019). The law of Increasing State Activities- Adolph Wagner. https://bbamantra.com BPI Consulting LLC (2016). Are skewness and kurtosis useful statistics? https://documents.pub>... Business Standard, (2021). Capital expenditure. https://wapbusiness-standard.com Central Bank of Nigeria (CBN) (2020). Annual Statistical Bulletin. https://www.cbn.gov.ng>statbulletin CIA World Fact Book (2020). Nigeria economy. https://theodora.com>wfbcurrent Corporate Finance Institute, (2021). Frictional unemployment-overview, example and courses. https://corporatefinanceinstitute.com>... Dankumo, A. M., Ishak, S., Bani, Y., & Hamza, H. Z. (2019). The relationship between public expenditure, corruption and poverty in Nigeria. Journal Ekonomi dan Studi Pembangunan, 11(1), 76-89. http://dx.doi.org/10.17977/um... Ebi. R. O., & Ibe, R. C. (2019). Government expenditure and unemployment: Examination of the Nigerian evidence. International Journal of Business and Law Research, 7(1), 25 - 33. Erasmus, E. G. (2021). Public expediture and human capital development in Nigeria. Journal of Accounting and Financial Management, 7(2), 26-43. Fasu, G. A. (2019). Government expenditure and unemployment: Empirical investigation of Sub-Sharan African (SSA) countries. (A Master Thesis submitted to Eastern Illinois University). https://thekeep.eiu.edu/thesis/4573 Fernando, J. (2021). Gross domestic product (GDP). https://www.investopedia.com Gideon, M., Japheth, A., & Joseph, O. (2019). Effect of public spending on economic growth in Kenya. Journal of Economics, Management and Trade, 25(1), 1-11. https://doi: 10.9734/jemt/2019/v25i130185 Gupta, R., & Shastri, S. (2020). Public expenditure and economic growth in India: An empirical analysis of using Vector Auto-Regression (VAR) Model. Journal of Business and Economics Review, 5(2), 45-58. Guru, S. (2016). Public expenditure: Meaning, importance and other details. Ibrahim, T. R. (2019). Dymanic interaction between private savings and economic growth in Nigeria. Sumerianz Journal of Economic and Finance, 2(6), 51-61. https://www.sid.ir/en/journal/viewpaper.aspx?ID=283925 Ihenetu, H. I., & Sotonye, I. (2019). Budget implementation and human development nexus in Nigeria (1999-2018). International Journal of Innovative Finance and Economic Research, 7(3), 156 - 164. Institute of Chartered Accountant of Nigeria (ICAN) (2009). Public Sector Accounting and Finance. VI Publishers. Isibor, A. A., Babajide, A. A., & Okafor, T. C. (2014). Public expenditure and Nigerian growth. https://eprints.covenantuniversity.edu.ng>... Jeff-Anyeneh, S. E., & Ibenta, S. (2019). Government expenditure and economic growth: Evidence from the Nigeria economy (1981-2016). Advances in Research, 19(4), 1-14. Jeph-Anyeneh, S. E., Ananwude, A. C., Ezu, G. K., & Nnoje, A. I. (2020). Government expenditure and standard of living in an emerging market in Africa - Nigeria. Economic Journal of Emerging Markets, 12(2), 167-178. Kairo, C., Innocent, M. N. J., Okeke, A., & Aondo, D. C. (2017). Government expenditure and human capital development in Nigeria: An auto-regressive distributed lagged model. International Journal of Advanced Studies in Economics and Public Sector Management, 5(1), 143-158. KPMG (2020, October 9). 2021 National Budget: Issue no. 10.2 https://home.kpmg>Home>Insight Lukierman, A. (1988). Public expenditures: who really controls it and how. Penguin (Google Scholar). MacroTrends. Nigeria unemployment rate 1991-2021/Macro Trends. https//www.macrotrends.net>NGA Major, H. I, & Nmehielle, O. C. (2021). Government expenditure and economic growth: Evidenced from Nigeria economy (1999-2018). Innovative Journal of Accounting, Marketing and Management Research, 7(1), 84-92. Measure of America (2021). About human development: A Project of the Social Science Research Council. https//measureofamerica.org>human... Mose, N. (2020). Government expenditure and regional economic growth: The direction of causality. Asian Journal of Economics Business and Accounting, 18(4), 9-17. Muley, R. (2016). Public expenditure: Causes, principle and importance. https://en.m.wikipedia.org> Ndaguba, E. A. & Hlotywa, A. (2021). Public healthy expenditure and economic development: The case of South Africa between 1996 and 2016. Cogent Economic & Finance, 9(1). doi:10.1080/23322039.2021.1905932 Ndubisi, N. (2021). A third of Nigerians are unemployed: Here's why. https://the conversation.com>a third Ndubueze, E.O., Okoli, I. N., & Mba, S. E. (2020). Impact of government expenditure on unemployment in Nigeria: Evidence from social expenditure. International Journal of Social Sciences and Management Research, 6(1), 65 - 75. Nduka, J. A., Ananwude, A.C., & Osakwe, C. I. (2019). Expenditure of the Federal Government of Nigeria: Effect on the standard of living of her citizens. International Journal of Academic Research in Accounting, Finance and Management Sciences, 9(4), 57-64. Njiru, E. W., Simiyu, J. M., & Bunde, A. O. (2020). Effect of government infrastructure investment on economic growth in Kenya. Journal of Economics and Sustainable Development, 11(4), 77-86. https://doi: 10.7176/JESD/11-4-09 Nwamuo, C. (2019). Impact of public expenditure on economic growth of Nigeria: 1981-2016. A disaggregated analysis. European Journal of Business and Management, 11(18), 9-19. Oga, A., Eyo, I. E., & Arikpo, O. F. (2019). Public expenditure and economic growth in Nigeria: VAR approach. European Journal of Economic and Financial Research, 3(3), 36-60. Olanrele, A. I. (2020). Dynamic effect of public expenditure on oil producing economy: An empirical evidence from Nigeria. Asian Journal of Economics and Empirical Research, 7(1), 64-73. Omodero, C.O. (2019). Government sectorial expenditure and poverty alleviation in Nigeria. Research in World Economy, 10(1), 80-90. https://doing.org/10.5430/rwe.v10n1p80 Onifade, S. T., Cevik, S., Asingu, S., & Bekun, F. V. (2019). An empir

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT

Cashflow Management and the Performance of Commercial Banks in Nigeria

Author: Jeffrey Ayas Iyakonbogha, Clement E. Ozele

The Nigerian Code of Corporate Governance and Financial Performance of Deposit Money Banks in Nigeria

Author: i, Eneaniofu Daniel Mmaduakonam, ii, Azolike Nkiru Nkechi, iii, Emeter Patrick Okechukwu, iv, Okwor Emmanuel Ejimnkonye