Original scientific paper
Public Expenditure and Economic Growth in Nigeria: Evidence from Auto-Regressive Distributed Lag Specifi cation
Tajudeen Egbetunde
; Department of Economics and Financial Studies,College of Management and Social Sciences,Fountain University, Osogbo, Nigeria
Ismail O. Fasanya
; Department of Economics, University of Ibadan, 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:
102021
URI
Publication date:
1.5.2013.
Visits: 12.896 *