PUBLIC SPENDING AND ECONOMIC GROWTH PERFORMANCE: EVIDENCE FROM NIGERIA

Authors

  • Oluyemi Ayodele Olonite Department of Accounting, Faculty of Management Sciences, University of Abuja, P.M.B 117, FCT-Abuja, Nigeria
  • Sani U. Gurowa Department of Accounting, Faculty of Management Sciences, University of Abuja, P.M.B 117, FCT-Abuja, Nigeria
  • Kamaluddeen Funsho Adisa Ibrahim Department of Accounting, Faculty of Management Sciences, University of Abuja, P.M.B 117, FCT-Abuja, Nigeria
  • John Olorunleke Ajewole Department of Accounting, Faculty of Management Sciences, University of Abuja, P.M.B 117, FCT-Abuja, Nigeria

DOI:

https://doi.org/10.29121/granthaalayah.v9.i7.2021.4043

Keywords:

Public Spending, Economic Growth, Capital Expenditure on Economic Services, Expenditure on Transfer, Nigeria, Central Bank of Nigeria, Statistical Bulletin

Abstract [English]

This study analysed the relationship between public spending and economic growth in Nigeria. The study used the secondary data from CBN Statistical Bulletin from 2004 – 2018. The Real Gross Domestic Product formed the dependent variable and the independent variable of interest were the Capital Expenditure on Economic Services, and Expenditure of Transfers. The variables were validated by conducting the unit root test using the Augmented Dickey Fuller (ADF) and Phillips Perron Test (PP), and the correlation coefficient were determined using STATA and the Pearson Product Moment Correlation. A multiple regression model was employed for the study and was analysed using the Generalized Least Squares (GLSs) with the aid of Eviews 11 statistical program. The results of the study indicated that Capital Expenditure on Economic Services has a positive and significant impact on Economic Growth while Expenditure on Transfer has a negative and insignificant impact on Economic Growth. The study recommends that Capital Expenditure on Economic Services should be maintained and increased and Expenditure on Transfer should be made Zero, also, the government should develop the refineries to start mass production in order to null off the negative effect of transfers (subsidy payment on oil import and price equalization).

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Published

2021-07-22

How to Cite

Olonite, O. A. ., Gurowa, S. U. ., Ibrahim, K. F. A. ., & Ajewole, J. O. . (2021). PUBLIC SPENDING AND ECONOMIC GROWTH PERFORMANCE: EVIDENCE FROM NIGERIA. International Journal of Research -GRANTHAALAYAH, 9(7), 1–14. https://doi.org/10.29121/granthaalayah.v9.i7.2021.4043