|Government Expenditure and Economic Growth in Nigeria, 1981-2015
|The paper examined the role of government expenditure on economic growth in Nigeria. Secondary data sourced from the Central Bank of Nigeria's statistical bulletin was utilized for the study. Relying on time series analysis of available data on government recurrent and capital expenditures as well as the real gross domestic product, the study revealed that government capital expenditure has inelastic and negative relationship with economic growth while government recurrent expenditure has an inelastic and positive relationship with economic growth in Nigeria. The study also revealed that only government recurrent expenditure was positive, correctly signed and theoretically consistent. On the other hand, government capital expenditure was negative and incorrectly signed, thus theoretically inconsistent. Therefore, capital expenditure did not have a positive effect on economic growth in Nigeria. The paper hence concludes that since capital expenditure in Nigeria was externally oriented, it predisposes the nation's economy to capital flight and further hampers economic growth.
|Government Expenditure, Economic Growth, ReaI GDP, Nigeria