IDEAS home Printed from https://ideas.repec.org/a/bhx/ijecop/v2y2022i2p31-50id1020.html
   My bibliography  Save this article

Effect of Budget Finance on Economic Growth in Nigeria

Author

Listed:
  • Adewale Segun Amos
  • Moses Ekperiware
  • John A. Oyetade
  • Adeyinka Adewusi

Abstract

Purpose: This study investigated the effect of budget finance on Nigeria's economic growth using annual data from 1991 to 2021 and the Autoregressive Distributed Lag technique. Methodology: The E-Views 10 statistical software was employed to carry out multiple Autoregressive Distributed Lag (ARDL) approach to co-integration proposed by Pesaran et al. (2001) to empirically analyses the long- and short-run effect of budget finance on economic growth in Nigeria 1991 to 2021. Results: The results of the study showed that government capital expenditures during the period had negative and non - significant effects on Nigeria's real gross domestic product but recurrent expenditure and debt shows that there is positive and significant relationship with Nigeria's real gross domestic product. The results suggested that there should be proper monitoring in the capital expenditure project in order to contribute positively to the economic growth in Nigeria. Unique Contribution to Theory, Policy and Practices: The study recommends that government should improve in their capital expenditure for increase in the growth of the economics. In addition, the government should ensure adequate capital and recurrent expenditure implementation in the country, particularly in construction of roads and buildings, and efficient capital budget implementation in the country. Moreover, is it advisable for government to reduce the level of borrowings because if continues it will lead to debts of the country.

Suggested Citation

  • Adewale Segun Amos & Moses Ekperiware & John A. Oyetade & Adeyinka Adewusi, 2022. "Effect of Budget Finance on Economic Growth in Nigeria," International Journal of Economic Policy, CARI Journals Limited, vol. 2(2), pages 31-50.
    • Handle: RePEc:bhx:ijecop:v:2:y:2022:i:2:p:31-50:id:1020
    as

    Download full text from publisher

    File URL: https://www.carijournals.org/journals/index.php/IJECOP/article/view/1020/1237
    Download Restriction: no
    ---><---

    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:bhx:ijecop:v:2:y:2022:i:2:p:31-50:id:1020. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chief Editor (email available below). General contact details of provider: https://www.carijournals.org/journals/index.php/IJECOP/ .

    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.