ISSN: 2226-3624
Open access
The study intended to ascertain impact of sectoral spreads of government expenditure on economic growth in Nigeria. The specific objectives are to: examine the impact of sectoral government expenditure on economic growth in Nigeria and ascertain if there is long-term relationship between sectoral government spending and economic growth in Nigeria. The study made use of expost-facto research design which enables us to measure the effect or relationship between dependence variable and explanatory variables using time-series secondary data from 1980 to 2017. The data were subjected to Unit Root, Johansen Cointegration, and Error Correction test and Durbin-watson test. The study concluded that there was positive impact of sectoral spreads of government expenditure on economic performance in Nigeria. Three variables on sectoral Government expenditure among five sectoral Government expenditure variables have long-run relationship with real GDP. This study’s conclusion confirmed wagner’s law that increase in economic growth was achieved as a result of increase in Government expenditure. The study verified that Government expenditure on Agriculture and Defence have statistical significant effect on economic performance in Nigeria while Government expenditure in transportation and communication, health and education were not statistical significant. Based on above stated findings, the study made the following recommendations: Political officeholders and public officeholders should first have political will to turn Nigeria into developed country through accountability and transparency act in the use of public fund. Nigeria government should promulgate more anti-corruption agencies to speed-up prosecution and execution of judgment on public fund looters.
Abu N. and Abdullahi U. (2010). Government Expenditure And Economic Growth In Nigeria, 1970-2008: A Disaggregated Analysis. Business and Economics Journal, Volume 2010: BEJ-4.
Abu-bader, S. and A. Abu-Qarn (2003) Government Expenditures, Military Spending and Economic Growth: Causality Evidence from Egypt, Israel and Syria. MPRA paper No. 1115. http://mpra.ub.unimuenchen. de/1115/
Adesoye A. B., Maku O. E. and Atanda A. A. (2010). Dynamic Analysis of Government Spending and Economic Growth in Nigeria. Journal of Management and Society: Vol. 1, No 2, pp. 27-37, December Edition 2010.
Adewara S. O. and Oloni E. F. (2012). Composition of Public Expenditure and Economic Growth in Nigeria. journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3(4): 403-407.
Akpan, E. (2005) Local Government Expenditure, Basingstoke: Macmillan Press.
Al-Yousif Y. (2000) Does Government Expenditure Inhibit or Promote Economic Growth: Empirical Evidence from Saudi Arabia. Indian Economic Journal, 48(2)
Anyanwu S., Egwaikhde C. and Aiyedogbon J. O. (2012). Comparative Regime Analysis of the Trend and Structure of Military Expenditure in Nigeria, 1980-2010. Journal of African Macroeconomic Review Vol. @, No. 1 (2012).
Bhatia H.L (2002). Public Finance, 25th Edition, Vikas Publishing House, PVT Ltd, India. CBN (2013). “Statistical Bulletin”. www.cenbank.org.
Bhatia H.L (2002). Public Finance, 25th Edition, Vikas Publishing House, PVT Ltd, India.
CBN (2013). “Statistical Bulletin”. www.cenbank.org.
Chude N. P. and Chude D. I. (2013). Impact of Government Expenditure On Economic Growth In Nigeria. International Journal of Business and Management Review: Vol.1, No.4, pp.64-71, December 2013.
Chude N. P. and Chude D. I. (2013). Impact of Government Expenditure On Economic Growth In Nigeria. International Journal of Business and Management Review: Vol.1, No.4, pp.64-71, December 2013.
Ebiringa O. F. and Chalse-Anyaogu N. B.(2012). Impact of Government Sectoral Expenditure on The Economic International Journal of Business and Management Review: Vol.1, No.4, pp.64-71, December 2012.
Ighodaro, C.A.U and Okiakhi, D.E. (2010): Does the Relationship Between Government Expenditure and Economic Growth Follow Wagner’s Law in Nigeria?. Annals of University of Petrosani Economics, Vol. 10(2), pp.185-198
Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. London: Macmillan.
Loto, M. A. (2011): Impact of government Sectoral Expenditure on Economic Growth. Journal of Economics and international Finance, Vol. 3(11), pp.646-652
Obinna, O. E. (2003) Public Finance, Nsukka, Ap and P Press Ltd. 210p
Okoro A. S.(2013). Government Spending And Economic Growth In Nigeria (1980-2011). Singaporean Journal Of Business Economics, And Management Studies VOl.2, NO.5, 2013.
Olugbenga A. O, Owoye O, (2007), Public Expenditure and Economic Growth, New Evidence from OECD Countries.
Usman A., Mobolaji H., Kilishi A., Yaru M. and Yakubu T. (2011). Public Expenditure and Economic Growth in Nigeria. Asian Economic and Financial Review, 1(3),pp. 104-113.
Yusuf S. A. (2014): The Analysis of Export Performance of NICs: A Lesson for African Countries. http://mpra.ub.uni-muechen.de/55110.html
Yusuf S. A. (2014): The Analysis of Impact of Investment in Education on Economic Growth in Nigeria: Veracity of Association of Staff Union of University of Nigeria’s Agitation: http://mpra.ub.unimuechen. de/55524
Yusuf, S.E, Babalola, B.T.A , Aninkan O. D. and Salako M. A. (2015). Analysis of Impact of Sectoral Government Expenditures on Economic Growth in Nigeria: Bound Test Co-integration Approach European Journal of Business and Management www.iiste.org Vol.7, No.12, 2015
In-Text Citation: (Chinedu, Daniel, & Ezekwe, 2018)
To Cite this Article: Chinedu, U. A., Daniel, O. C., & Ezekwe, U. C. (2018). Sectoral Spreads of Government Expenditures and Economic Growth in Nigeria (1980-2017): An Approach of Error Correction Model. International Journal of Academic Research in Economics and Management Sciences, 7(4), 180–195.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode