TITLE:
Testing Relationship between Government Current Expenditures and Economic Growth in Nigeria
AUTHORS:
Sebastian O. Uremadu, Patience C. Orikara, Charity E. Uremadu
KEYWORDS:
Government Recurrent Expenditures, Economic Growth, National Assembly, Public Debt Servicing, Pensions and Gratuities, Administration, Transfers
JOURNAL NAME:
Theoretical Economics Letters,
Vol.9 No.4,
March
28,
2019
ABSTRACT: 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.