Empirical Investigation of the Effect of Government Expenditures on Gross Domestic Product in Nigeria
- Post by: airjournals
- February 21, 2023
- Comments off
This study is an empirical investigation of the effect of government expenditure on gross domestic product in Nigeria. The specific objectives of the study are to ascertain the effect of government real total capital expenditure on gross domestic product of Nigeria and to examine the effect of government recurrent expenditure on gross domestic product of Nigeria. This study which covered 11 years time scope spans from 2012 to 2022. It adopted ex-post facto research design and used secondary data of annual time series. The materials and information were obtained from the CBN Annual Report and Statistical Bulletin for various years. The study was theoretically underpinned on Keynesian Theory. The method used in analyzing the data was the ordinary least square regression model. The study found that real total capital expenditure (RTCAP) had positive and significant effect on gross domestic product. Only real total recurrent expenditure (RTRE) had negative effects on gross domestic product in the period under consideration. The study among others recommends that the government should ensure that both capital and recurrent expenditures are properly managed in a manner that it will raise the nation’s production capacity and accelerate gross domestic product (GDP).
Keywords: Government Expenditure; Revenue; Nigeria
Oloto, Ngozi U.