Original scientific paper

Public Expenditure and Economic Growth in Nigeria: Evidence From Auto-Regressive Distributed Lag Specification

Tajudeen Egbetunde ; Fountain University, Department of Economics and Financial Studies, College of Management and Social Sciences, Osogbo, Nigeria
Ismail O. Fasanya ; University of Ibadan, Department of Economics, Ibadan, Nigeria

Abstract

This paper analyses the impact of public expenditure on economic growth in Nigeria during the period 1970 to 2010 making use of annual time series data. The study employs the bounds testing (ARDL) approach to examine the long run and short run relationships
between public expenditure and economic growth in Nigeria. The bounds test suggested that the variables of interest put in the framework are bound together in the long-run. The
associated equilibrium correction was also signifi cant confi rming the existence of long-run relationships. Our fi ndings indicate the impact of total public spending on growth to be negative which is consistent with other past studies. Recurrent expenditure however was found to have little signifi cant positive impact on growth. Therefore, government should increase its spending on infrastructure, social and economic activities.

Keywords

Public Spending; Economic Growth; ARDL Cointegration; Nigeria

Hrčak ID:

129457

URI

https://hrcak.srce.hr/129457

Publication date:

1.11.2014.

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