EFFECT OF PUBLIC EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA (1981-2013)

📄 Project Abstract

The subject of government involvement in resource allocation stems from the failure of market mechanism to effectively and efficiently perform this task. From the very inception, government is not to be involved in the day-to-day running of an economy as propounded in the doctrine of laizzez-faire by Adam Smith, but to provide an enabling environment for the economy to operate, while maintaining law and order and protecting the nation from external aggression. The market mechanism could to a greater extent cater for the allocation of private goods based on exchange and competition but certainly not reliable for public goods. Public goods according to Wikipedia encyclopaedia is non-rivalry and non-excludable. Non-rivalry implies consumption of good by one individual which does not reduce its availability for consumption by others; while non-excludability means, no person can be effectively excluded from using the good. In reality, it might be difficult to absolutely come across non-riva...