Pyrex Journal of Business and Finance Management Research

December 2016 Vol. 2(10), pp. 122-134

ISSN: 2985-8860

Copyright 2016 Pyrex Journals

Full Length Research Paper

How Government Expenditure Effects On Economic Growth In Nigeria

Samira Abdulrahman

Zamani College, Kaduna, Nigeria.

Corresponding Author E-mail:

Accepted 23rd December, 2016


This research work Centers on the impact of Government Expenditure on Economic Growth in Nigeria. Given that Government Expenditure is at the core of economic stabilization, it is important to examine carefully how it influences the economic growth so that it would be in consonance with other macroeconomic objectives. Gross domestic product (GDP) was regressed on the Aggregate Government expenditure, interest rate and Money Supply in Nigeria for the period of 1986 2011. The analytical tools of analysis were used in analyzing the data collected, and the model used is multiple regression models. From the result, it is clear that Government Expenditure has a negative and insignificant impact on the economic growth of a country, despite the fact that the overall model performance is good as shown by the R Square and F - test. It has been shown in the cause of the research through the review of empirical literature as well as the regression results that economic growth in the Nigerian economy is basically a fiscal policy phenomenon, as generally held. Consequently, based on findings from the research, the Government should pay priority attention to economic services in terms of the functional classification of its expenditure. Government Expenditure should be adequately monitored and further studies should be conducted to investigate other influences on the economic growth of Nigeria which would aid fiscal policy making and implementation.

Keywords: Fiscal policy, economy, expenditure, research.

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