Effects of Public Expenditure on Economic Growth in Nigeria

An examination of the effects of public expenditure on economic growth in Nigeria was carried out in this study for a period of nineteen years (1999-2018). Gross Domestic Product was employed to measure economic growth. The combined effects of recurrent and capital expenditures were ascertained using appropriate time series data extracted from the Statistical Bulletin of the Central Bank of Nigeria. Ex post facto research design was adopted for the study and is supported by the Barro model of public expenditure. The study employed ordinary least square regression method of analysis and the result indicated that public expenditure has a positive effect on economic growth in Nigeria. Based on the individual explanatory variables, the result showed that recurrent expenditure has a positive significant effect on economic growth in Nigeria. The result also, show that capital expenditure has a positive and significant effect on economic growth in Nigeria. It was concluded that public expenditure has the capability of improving GDP in Nigeria. Based on the findings and conclusion, it was recommended that mechanisms to monitor public expenditure should be adopted since it contributes more to the growth of Gross Domestic Product.