IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v7y2023i5p457-469.html
   My bibliography  Save this article

Government Infrastuctural Spending and Economic Growth in Nigeria

Author

Listed:
  • Uju Victoria Okoli

    (Economics, Nnamdi Azikiwe University Awka Anambra state Nigeria)

  • Ebele Stella Nwokoye

    (Economics, Nnamdi Azikiwe University Awka Anambra state Nigeria)

  • Ifeoma Rita Ezedebego

    (Economics, Nnamdi Azikiwe University Awka Anambra state Nigeria)

Abstract

The Nigerian government has consistently increased spending without a corresponding improvement in the country’s economic growth trajectory. Using Hirschman’s approach, this study investigated the impact of government spending on economic growth in Nigeria, analyzing annual data from 1970 to 2020. The study utilized data from the CBN Statistical Bulletin to examine government’s spending in the transport, communication, health, education, and utilities sectors. An autoregressive distributed lag model was employed, and the results indicate a positive but non-significant short-term effect of communication and utility sector spending on Nigeria’s economic growth. However, there was a negative but non-significant short-term effect of transportation, health, and education sector spending on Nigeria’s economic growth. Thus, the study recommends that the government increase expenditure on the highlighted sectors, as well as the agricultural and petroleum sectors, which are areas where Nigeria is highly endowed. This approach will enable the country to achieve infrastructural development and positively impacting economic growth.

Suggested Citation

  • Uju Victoria Okoli & Ebele Stella Nwokoye & Ifeoma Rita Ezedebego, 2023. "Government Infrastuctural Spending and Economic Growth in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 457-469, May.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:5:p:457-469
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-7-issue-5/457-469.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/journals/ijriss/articles/government-infrastuctural-spending-and-economic-growth-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    2. Kalu Ojah & Odongo Kodongo, 2016. "Does Infrastructure Really Explain Economic Growth in Sub-Saharan Africa?," Working Papers 653, Economic Research Southern Africa.
    3. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    4. anonymous, 2006. "The future of economic development in rural America," Profitwise, Federal Reserve Bank of Chicago, issue Jul.
    5. Amadi Kelvin Chijioke & Alolote Ibim Amadi, 2020. "Government Expenditure on Infrastructure as a Driver for Economic Growth in Nigeria," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 5(2), pages 20-26, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Garikai Makuyana & Nicholas M. Odhiambo, 2019. "Public and private investment and economic growth in Malawi: an ARDL-bounds testing approach," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 673-689, January.
    2. V. Chandran Govindaraju & Ramesh Rao & Sajid Anwar, 2011. "Economic growth and government spending in Malaysia: a re-examination of Wagner and Keynesian views," Economic Change and Restructuring, Springer, vol. 44(3), pages 203-219, August.
    3. Minhaj ud-Din & Muhammad Azam Khan & Muhammad Tariq, 2020. "External Debt - Blessing or Curse: Empirical Evidence from Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(4), pages 235-246.
    4. Amit Nandan & Hrushikesh Mallick, 2022. "Do growth-promoting factors induce income inequality in a transitioning large developing economy? An empirical evidence from Indian states," Economic Change and Restructuring, Springer, vol. 55(2), pages 1109-1139, May.
    5. Galstyan, Vahagn & Lane, Philip R., 2009. "Fiscal Policy and International Competitiveness: Evidence from Ireland," The Economic and Social Review, Economic and Social Studies, vol. 40(3), pages 299-315.
    6. Ceyhun Haydaroglu, 2015. "The Relationship between Property Rights and Economic Growth: an Analysis of OECD and EU Countries," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 217-239, December.
    7. Tassew Dufera Tolcha & P.Nandeeswar Rao, 2016. "The Impact of Remittances on Economic Growth in Ethiopia," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 7(2), pages 01-15, May.
    8. Saungweme, Talknice & Odhiambo, Nicholas M, 2019. "Causality between public debt, public debt service and economic growth: Evidence from South Africa," Working Papers 25745, University of South Africa, Department of Economics.
    9. Stephen Taiwo Onifade & Savaş Çevik & Savaş Erdoğan & Simplice Asongu & Festus Victor Bekun, 2020. "An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-13, December.
    10. Ebadi, Esmaeil, 2018. "On the Effect of Government Spending on Money Demand in the United States: An ARDL Cointegration Approach," MPRA Paper 86399, University Library of Munich, Germany.
    11. Ebadi, Esmaeil, 2018. "On the Measurement of the Government Spending Multiplier in the United States An ARDL Cointegration Approach," MPRA Paper 85459, University Library of Munich, Germany.
    12. Hayat, Zafar & Balli, Faruk & Rehman, Muhammad, 2018. "Does inflation bias stabilize real growth? Evidence from Pakistan," Journal of Policy Modeling, Elsevier, vol. 40(6), pages 1083-1103.
    13. Joseph Pasky Ngameni & Ludovic Feulefack Kemmanang & Sylvain Bertelet Ngassam, 2022. "Growth Gap between China and Africa: Do Digital Technologies Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 24-43, March.
    14. Maiga Nouhoun Oumarou & Sirpe Gnanderman, 2023. "Optimal size of public expenditure in the countries of the West African Economic and Monetary Union (WAEMU)," Economics Bulletin, AccessEcon, vol. 43(1), pages 146-160.
    15. Fedderke, J.W. & Perkins, P. & Luiz, J.M., 2006. "Infrastructural investment in long-run economic growth: South Africa 1875-2001," World Development, Elsevier, vol. 34(6), pages 1037-1059, June.
    16. Themba G Chirwa & NM Odhiambo, 2019. "An Empirical Test Of Exogenous Growth Models: Evidence From Three Southern African Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 64(220), pages 7-38, January –.
    17. Xavier Raurich & Hector Sala & Valeri Sorolla, 2009. "Labour market effects of public capital stock: evidence for the Spanish private sector," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 1-18.
    18. Wahab, Mahmoud, 2011. "Asymmetric output growth effects of government spending: Cross-sectional and panel data evidence," International Review of Economics & Finance, Elsevier, vol. 20(4), pages 574-590, October.
    19. Khatai Aliyev & Orkhan Nadirov, 2016. "How Fiscal Policy Affects Non-Oil Economic Performance in Azerbaijan?," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 2(3), pages 11-29, September.
    20. Mabrouki, Mohamed, 2019. "The Swedish economy is doing well thanks to innovation: an analysis from ARDL approach," MPRA Paper 102367, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:7:y:2023:i:5:p:457-469. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.