The Impact of Federal Government Expenditure on Economic Growth in Nigeria (1981-2014)

Udoffia, David Thompson; Godson, Juliet Rita

doi:10.15580/gjss.2016.4.110116199

Cited by 10 publications

(16 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Previous studies had been carried out on the relationship between government spending and economic growth in Nigeria. For instance, Kareem et al [10]; Ukwureze [11]; Njoku et al [12]; Omo and Bashir [13]; Ogbuagu and Ekpenyong [14]; Shuaib et al [15]; Udoffia and Godson [16]; Olayemi [17]; Obialor [18]; Nwankwo et al [19]; Nwoha et al [20] and others. They had varying results and findings on the effect of government expenditures on economic growth in Nigeria had been a mixed bag.…”

Section: Statement Of the Problemmentioning

confidence: 99%

“…Udoffia and Godson [16] analyzed the impact of federal government expenditure on economic growth in Nigeria for the period 1981 to 2014. Real gross domestic product served as the proxy for economic growth and it served as the dependent variable while recurrent expenditure and capital expenditure served as federal government expenditure and these served as the independent variables.…”

Section: Empirical Literaturementioning

confidence: 99%

See 1 more Smart Citation

Testing Relationship between Government Current Expenditures and Economic Growth in Nigeria

Uremadu¹,

Orikara²,

Uremadu³

2019

TEL

View full text Add to dashboard Cite

This study investigates the relationship between government recurrent expenditures and economic growth in Nigeria for 18 years: 1999-2016. In doing this, the paper disaggregated government current expenditures into five categories used as explanatory variables. The estimated result showed that influence of government expenditures on national assembly, pensions and gratuities had insignificant effect on economic growth. However, total government expenditures on administration and public debt servicing had a positive and significant effect on economic growth. Also the study revealed that total government expenditures on transfers had insignificant effect on economic growth. Study therefore recommends that annual government recurrent expenditures on administration and public debt servicing should be sustained as they led to economic growth, but that all leakages arising from such spending should be blocked in order to achieve an enhanced growth.

show abstract

Section: Statement Of the Problemmentioning

confidence: 99%

Section: Empirical Literaturementioning

confidence: 99%

Testing Relationship between Government Current Expenditures and Economic Growth in Nigeria

Uremadu¹,

Orikara²,

Uremadu³

2019

TEL

View full text Add to dashboard Cite

show abstract

“…The model used in this study was adapted from Akonji et al, (2013) and Udoffia and Godson's (2016) studies in an attempt to replicate their efforts to test Wagner's Law and test the true empirical state of the Keynesian theory on connectivity between the variables employed in the study.…”

Section: Model Specificationmentioning

confidence: 99%

“…Empirical findings of the effects of federal government expenditures on growth in the Nigerian context have been mixed and inconsistent. In relation to the issues already raised, extant studies, such as Njoku et al (2014), Udoffia and Godson (2016), Akonji et al (2013) and many others reported that recurrent expenditure impacts growth positively in Nigeria, while the findings of studies, such as Aigheyisi (2013) and Ayinde et al (2015) suggested otherwise. In fact, by confirming the inconsistencies among extant studies, Ayinde et al (2015) suggested a further re-evaluation and reassessment of the direction of causal impact between recurrent expenditure and economic growth.…”

Section: Introductionmentioning

confidence: 99%

The rising government expenditure in Nigeria: Any influence on growth?

Segun¹

2019

EurJ Appl Econ

View full text Add to dashboard Cite

This study attempts to examine whether government expenditure in Nigeria has had any influence on growth in the economy. The study focuses primarily on capital and recurrent types of government expenditure, and these were regressed against the real gross domestic product. Secondary time series data ranging from 1981 to 2016 obtained from the CBN Statistical Bulletin were used. Having established that the series were co-integrated in the long run through the Cointegration technique of Johansen, the study then used the error correction and Granger causality techniques to achieve its objectives. Results indicated that recurrent expenditure exerts a significant positive influence on real GDP, while the influence of capital expenditure on real GDP turned out negative. The Granger causality test revealed that both capital and recurrent expenditures Granger cause real GDP. The study, therefore, advocates for a strong monitoring and evaluation system of the way in which government funds, especially those intended for capital projects, are being used, so as to bring about a meaningful influece on the economy.

show abstract

“…The result shows that, community and social services has a positive and significant effect on the Nigeria's national income. Similarly, (Udoffia and Godson 2016) examined the impact of federal government expenditure on economic growth from 1980 to 2014; employing regression analysis on capital expenditure; recurrent expenditure and real gross domestic product in Nigeria, capital and recurrent expenditure have positive effect on real gross domestic product. (Bol & Willy, 2016) used public expenditure, infrastructure, production, social services and security as variables to know the relationship between public expenditure and economic growth in South Sudan from 2006 to 2014 with Random effect model.…”

Section: Empirical Studiesmentioning

confidence: 99%

Empirical Examination of the Effects of Government Spending on the GDP Growth Rates of Nigeria

Ocheni

2018

Indian Journal of Commerce &Amp; Management Studies

View full text Add to dashboard Cite

This research work presents an empirical analysis of the impact of government spending on Nigerian economy. The research work made use of secondary data collected from Central Bank of Nigeria's Statistical Bulletin of various issues and National Bureau of Statistics. The empirical measurement covers the period between 2000 and 2016. An Ordinary Least Square (OLS), Augmented Dickey-Fuller unit root test and Co-integration test were adopted to carry out an extensive analysis of the adopted variables which include Gross Domestic Product growth rate, recurrent expenditure and Capital expenditure. The result revealed that the variables have significant effect in the positive direction. This implies that as recurrent expenditure increases, the growth rate of the economy decreases. An increase in the capital expenditure also causes a positive influence on the Nigeria economy within the period considered. The following recommendations were made: That sine recurrent expenditure can still thrive amidst corruptions and embezzlements, government spending should be properly managed so as to raise the nation's production capacity and employment, which in turn will increase economic growth in Nigeria. It was also recommended that in order that government can increase its capital expenditure especially on rural roads and electricity government should promote efficiency in the allocation of development resources through emphasis on private sector participation and privatization\commercialization. Besides, independence of Anti-graft or anti-corruption agencies should not be a negotiable phenomenon to enable the outfits curb the menaces of corruption and embezzlements in the system especially during budget preparation and implementations. They should be made to examine the lapses in embezzlement level of our past leaders in terms of budgetary inflation; correctness of proper imputation and computation of the monetary figures as well as checkmating the past wrong manipulation so as to correct it for future purposes.

show abstract

The Impact of Federal Government Expenditure on Economic Growth in Nigeria (1981-2014)

Cited by 10 publications

References 1 publication

Testing Relationship between Government Current Expenditures and Economic Growth in Nigeria

Testing Relationship between Government Current Expenditures and Economic Growth in Nigeria

The rising government expenditure in Nigeria: Any influence on growth?

Empirical Examination of the Effects of Government Spending on the GDP Growth Rates of Nigeria

Contact Info

Product

Resources

About