Original scientific paper
https://doi.org/10.1080/1331677X.2018.1436453
Government spending on infrastructure and economic growth in Nigeria
Shakirat Adepeju Babatunde
; School of Postgraduate Studies, Department of Accounting, University of Lagos, Akoka, Lagos, Nigeria
Abstract
This study aims to investigate government spending on infrastructure.
Both primary and secondary data are used for the study. The
secondary data comprise of reported annual spending on selected
infrastructure and annual Gross Domestic Products for 1980 to 2016
for Nigeria. The data treatments used for the secondary data are unit
root and co- integration tests using Augmented Dickey–Fuller and
Phillip–Perron model. Weighted least square was used to test the
sample of 37-year annual time series using vector error correction
model. For the primary data, a sample of 242 respondents is utilised
for the study. Statistical random sampling was used for the sample
selection. The data analysis was done with descriptive statistics.
Findings from the study indicate that government spending on
transport and communication, education and health infrastructure
has significant effects on economic growth; spending on agriculture
and natural resources infrastructure recorded a significant inverse
effect on economic growth in Nigeria. An element of fiscal illusion
was observed in the government spending on agriculture and natural
resources indicating that government is not contributing as much as
the private sector in spending on agriculture and natural resources
infrastructure in Nigeria.
Keywords
Economic growth; fiscal illusion; government spending; infrastructure; agriculture
Hrčak ID:
206087
URI
Publication date:
3.12.2018.
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