Impact of Public Expenditure on Nigeria's Economic Growth

📄 Project Abstract

This study examines the impact of public expenditure on economic growth in Nigeria using time series data over the period 0f 1981-2016. The study is primarily aimed at ascertaining the relationship between federal government expenditure and economic growth in Nigeria. To achieved this objective, the study adopted the econometric technique of Ordinary Least Squares (OLS) and Error Correction Mechanism (ECM). The Augmented Dickey Fuller test was used in the study to check for unit root. The ADF result showed that all the variables were stationary at first difference and the co-integration test indicated a long run relationship among the variables.The findings reveal that federal government capital expenditure, federal government recurrent expenditure and gross fixed capital formationare statistically significant while inflation rate is statistically insignificant.On the bases of the foregoing, the study recommends relevant authorities should monitor each project issued out to avoid diver...