IMPACT OF GOVERNMENT EXPENDITURE ON MAJOR MACROECONOMIC VARIABLES IN NIGERIA, 1980 - 2014

📄 Project Abstract

Using annual time series data from 1980 to 2014, this study investigated the impact of government expenditure disaggregated into capital (CEXP) and recurrent (REXP) on GDP Per Capita (GDPPC), inflation (INF), unemployment (UNEMP), and Gini index (GINCO, proxy for poverty) respectively to construct principally four econometrics models. The study adopted the ex-post facto research design in the study and five hypotheses were proposed and tested. The multiple regression and Granger causality test of the Ordinary Least Square (OLS) technique of analysis were employed in obtaining the numerical estimates of the coefficients in the different equations. The study estimated the models in the statistical procedure of co-integration and Error-Correction Model (ECM). The results of long run regression showed that government capital and recurrent expenditure both had positive and significant impact on GDP per capita;