International Journal of Development and Economic Sustainability (IJDES)

EA Journals

Government Expenditure and the Nigerian Economy Growth Performance

Abstract

This study explicitly examined the effects of government expenditure on education, agriculture and manufacturing, on the growth performance of the Nigerian economy from 2000 to 2023, using the ARDL Bounds test approach. Annual data were sourced from the National Bureau of Statistics, Central Bank of Nigeria (CBN) Statistical Bulletin and World Bank Indicators (various issues). The Augmented Dickey Fuller and Phillips Perron unit root tests were used to check the level of stationarity while the ARDL Bounds test to cointegration was used to justify the long-run relationship. It was discovered that a positive relationship exists between government expenditure and the growth performance of the Nigerian economy (proxy by GDP). Therefore, an improved educational sector due to increased budgetary allocation on education positively influence agriculture and ultimately, the manufacturing sector. This is because the output of the education sector are inputs to the agricultural sector and the output of the agricultural sector are inputs to the manufacturing sector. It was therefore recommended that for an improved agricultural and manufacturing sector performance, the government should improve her budgetary allocations to the educational sector. Furthermore, taxes on luxury goods should be increased and the proceeds channeled towards the funding of infrastructural facilities that are capable of boosting the performances of these key sectors. The government should increase her partnership with the private sector in relation to financing public expenditure through Corporate Social Responsibilities (CSR) in their host communities and beyond.

Keywords: ARDL bounds test, Government Expenditure, Growth Performance, Nigeria

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This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License

 

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Email ID: editor.ijdes@ea-journals.org
Impact Factor: 7.72
Print ISSN: 2053-2199
Online ISSN: 2053-2202
DOI: https://doi.org/10.37745/ijdes.13

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