IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA (1985-2014)

ABSTRACT

This study examined the impact of government expenditure on economic growth in Nigeria for the period 1985-2014.The study employed Vector Error Correction Model (VECM) to examine the effect that government expenditure has on economic growth in Nigeria and also co-integration test was used to test for long-run relationship between government expenditure and economic growth in Nigeria. The result of the test for this study revealed that government capital and recurrent expenditure contributed significantly on economic growth in Nigeria and according to the co-integration test; it revealed that there is a long-run relationship between government expenditure and economic growth in Nigeria. Based on the result which showed that capital and recurrent expenditure has a significant impact on economic growth, the study recommended increased policies and programmes that will lead to adequate skilled workforce which will be able to stimulate economic growth.  

TABLE OF CONTENT

COVER PAGE .......................................................................................i

ABSTRACT...........................................................................................ii

CHAPTER ONE: INTRODUCTION

1.1  BACKGROUND OF THE STUDY......................................................1

1.2  SIGNIFICANCE OF THE STUDY......................................................3

CHAPTER TWO:  LITERATURE REVIEW

2.1 CONCEPTUAL FRAMEWORK..........................................................4

2.1.1 UNEMPLOYMENT..........................................................................4

2.1.2 CAUSES OF UNEMPLOYMENT.....................................................6

2.1.3 INFORMAL SECTOR........................................................................7

2.1.4 INFORMAL SECTOR AND EMPLOYMENT GENERATION...........9

2.1.5 THEORETICAL ANALYSIS..............................................................11

2.1.6 EMPIRICAL ANALYSIS....................................................................15

CHAPTER THREE: METHODOLOGY

3.0   METHODOLOGY.................................................................................17

3.1 ESTIMATION TECHNIQUES.................................................................17

3.2 RESEARCH HYPOTHESIS...................................................................17

3.3 INSTRUMENT USED...........................................................................18

CHAPTER FOUR: ANALYSIS AND INTERPRETATION OF RESULTS

4.1 DISCUSSION OF RESULTS...........................................................19

CHAPTER FIVE:CONCLUSION AND RECOMMENDATIONS.

5.1 CONCLUSION...............................................................................20

5.2 RECOMMENDATION....................................................................20

REFERENCES......................................................................................21