Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237439 
Year of Publication: 
2021
Citation: 
[Journal:] CBN Journal of Applied Statistics [ISSN:] 2476-8472 [Volume:] 12 [Issue:] 1 [Publisher:] The Central Bank of Nigeria [Place:] Abuja [Year:] 2021 [Pages:] 139-174
Publisher: 
The Central Bank of Nigeria, Abuja
Abstract: 
This study investigates the impact of Nigerian government expenditure (disaggregated into capital and recurrent) on economic growth using time series data for the period 1970-2019. The paper employs Autoregressive Distributed Lag (ARDL) model. To ensure robustness of results, the study accounts for structural breaks in the unit root test and the co-integration analysis. The key findings of the study are that capital expenditure has positive and significant impact on economic growth both in the short run and long run while recurrent expenditure does not have significant impact on economic growth both in the short run and long run. The study recommends that government should increase the share of the capital expenditure especially on meaningful projects that have direct bearing on the citizen's welfare. Government should also improve the spending patterns of recurrent expenditure through careful reallocation of resources toward productive activities that would enhance human development in the country.
Subjects: 
ARDL
capital expenditure
endogenous growth model
economic growth
recurrent expenditure
JEL: 
C32
H54
H50
O40
O41
Persistent Identifier of the first edition: 
Document Type: 
Article

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