Author(s)

Sebastian O. Uremadu^1*, Patience C. Orikara², Charity E. Uremadu³

¹Department of Banking and Finance, College of Management Sciences (COLMAS), Michael Okpara University of Agriculture, Umudike, Nigeria.
²Abia State Internal Revenue Service Board, Umuahia, Nigeria.
³Department of Educational Management, College of Education, COED, Michael Okpara University of Agriculture, Umudike, Nigeria.

This study investigates the relationship between government recurrent expenditures and economic growth in Nigeria for 18 years: 1999-2016. In doing this, the paper disaggregated government current expenditures into five categories used as explanatory variables. The estimated result showed that influence of government expenditures on national assembly, pensions and gratuities had insignificant effect on economic growth. However, total government expenditures on administration and public debt servicing had a positive and significant effect on economic growth. Also the study revealed that total government expenditures on transfers had insignificant effect on economic growth. Study therefore recommends that annual government recurrent expenditures on administration and public debt servicing should be sustained as they led to economic growth, but that all leakages arising from such spending should be blocked in order to achieve an enhanced growth.

Government Recurrent Expenditures, Economic Growth, National Assembly, Public Debt Servicing, Pensions and Gratuities, Administration, Transfers

Uremadu, S. , Orikara, P. and Uremadu, C. (2019) Testing Relationship between Government Current Expenditures and Economic Growth in Nigeria. Theoretical Economics Letters, 9, 584-604. doi: 10.4236/tel.2019.94041.