Effect Of Government Expenditure On Economic Growth Of Nigeria (1986-2018)

ABSTRACT

The study examined the effect of government expenditure on economic growth of Nigeria from 1986-2018. The study made use of ex post facto research design which involved gathering time series data from the Central Bank of Nigeria statistical Bulletin 2018 edition. The Ordinary Least Square method was used as method of data analysis. The findings of the work revealed that there is a positive insignificant effect on recurrent and capital expenditure on economic growth of Nigeria. The study therefore concludes that government expenditure significantly affects economic growth of Nigeria and that there is a long run relationship between government expenditure and economic growth of growth during the period under study. On the basis of the findings, it was recommended that government should use recurrent expenditure that would increase consumption and enhance economic activities. Also, government should increase its capital expenditure and judiciously embark on project that would boost economic growth.