The Impact of Public Expenditure on Nigerian Economy (1970-2011)

The specific objectives of the study were to investigate empirically the kind of impact government expenditure has on economic growth, to examine how shocks transmits between government expenditure and economic growth and to outline the constraints limiting the effectiveness of government expenditure and economic growth in Nigeria. This study employed the use of annual Nigerian data for the period 1970 to 2011 for all the variables and the stationarity, granger causality, co-integration and autocorrelation tests were conducted. The study showed that government expenditure had a significant and positive impact on economic growth while imports, savings and unemployment rate had negative impacts on economic growth. Oil revenue also had a positive but insignificant impact on economic growth. The author's recommendations includes among others the following: government should increase her investment on productive economic activities and government should diversify by also investing in other sectors of the economy since the impact of the petroleum industry on growth was found to be insignificant.

Autorentext

Oga Victor obtained his B.Sc Economics at the University of Nigeria, Nsukka. He is a smart and vibrant individual, saddled with Graphics Design/ICT skills, fascinated at the horizons his own education and experience has opened up for him, and wants to be an instrument in creating such horizons for others.