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Government Expenditure and Sap in Nigeria: An Empirical Perspective

Author

Listed:
  • Okoli, Uju Victoria

    (Department of Economics, Nnamdi Azikiwe University Awka Anambra State, Nigeria)

  • Prof (Dr.) Ram Milan

    (Department of Economics, Nnamdi Azikiwe University Awka Anambra State, Nigeria)

  • Ezenwobi, Ngozi Flourence

    (Department of Economics, Nnamdi Azikiwe University Awka Anambra State, Nigeria)

Abstract

This study examines the impact of government expenditure for infrastructure on economic growth before and after the introduction of SAP in Nigeria, using annual data for the period of 1970 to 2022. Data were sourced from CBN Statistical Bulletin on government spending on transport, communication, health, education, and utilities sectors. Augmented Dickey-Fuller Test and Auto Regressive Distributed Lag Model were employed as analytical tools for the study. The results show a positive short run effect of growth rate of government spending on transportation sector, communication sector, health sector, education sector and utility sector on economic growth in Nigeria during the pre-SAP and SAP periods. The opposite becomes the case to cover from the post-SAP period till date not minding the period anchored a lot more of government policies targeted at the economic development of Nigeria. The study therefore recommends that government should ensure that what is annually budgeted for infrastructural development in the country should be judiciously and economically spent in other to attain economic growth.

Suggested Citation

  • Okoli, Uju Victoria & Prof (Dr.) Ram Milan & Ezenwobi, Ngozi Flourence, 2024. "Government Expenditure and Sap in Nigeria: An Empirical Perspective," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(5), pages 1035-1049, May.
    • Handle: RePEc:bjc:journl:v:11:y:2024:i:5:p:1035-1049
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    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. Chukwuebuka Bernard Azolibe & Jisike Jude Okonkwo & Patrick Kanayo Adigwe, 2020. "Government Infrastructure Expenditure and Investment Drive in an Emerging Market Economy: Evidence from Nigeria," Emerging Economy Studies, International Management Institute, vol. 6(1), pages 61-85, May.
    3. 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.
    4. Shakirat Adepeju Babatunde, 2018. "Government spending on infrastructure and economic growth in Nigeria," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 31(1), pages 997-1014, January.
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