IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA

Useni Yerima, Vincent Allahoki Nymphas, Yakubu Usman Sani, David Khaba Auta, Nzens Uten Amos, Jamilu Sale Abwage

Abstract


This study assessed the impact of government expenditure on economic growth in Nigeria using time series data of 1986-2020. Structural Vector Auto-regression (SVAR) model and the pair-wise causality test were adopted. The study observed that government expenditure in health and education had an insignificant impact on economic growth. The result also showed that public debt has an insignificant impact on economic growth. The study, therefore, recommends that: Government expenditure in education and health should be increased significantly to at least meet up with regional and global expenditure benchmark; government should minimise the incidence of borrowing especially with about 92% of the revenue generated going for debt servicing for borrowings that are largely non-productive. Borrowing analysis should also be extended to revenue generating capacity as debt to GDP ratio is not all encompassing.


Keywords


Impact, Government Expenditure, Economic Growth, SVAR.

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Copyright (c) 2022 Useni Yerima, Vincent Allahoki Nymphas, Yakubu Usman Sani, David Khaba Auta, Nzens Uten Amos, Jamilu Sale Abwage

 

 

 

 ISSN (PRINT):    2734 - 2522

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