THE RELATIONSHIP BETWEEN GOVERNMENT SPENDING AND NIGERIA'S ECONOMIC GROWTH: VECTOR AUTO-REGRESSION APPROACH
This study examined the relationship between government spending and Nigeria's economic growth using time series data from 1982 to 2022. Both the pairwise causality test and the Vector Auto-regression (VAR) model were used. According to the study, government spending on health and education ha...
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| Format: | Article |
| Language: | English |
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Federal University Wukari
2023-07-01
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| Series: | International Studies Journal |
| Online Access: | https://wissjournals.com.ng/index.php/wiss/article/view/211 |
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| author | Benedict Azu Agbobu Shedrack Onyeka |
| author_facet | Benedict Azu Agbobu Shedrack Onyeka |
| author_sort | Benedict Azu |
| collection | DOAJ |
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This study examined the relationship between government spending and Nigeria's economic growth using time series data from 1982 to 2022. Both the pairwise causality test and the Vector Auto-regression (VAR) model were used. According to the study, government spending on health and education has little effect on economic growth. It also turned out that the effect of public debt on economic growth is negligible. Consequently, the study suggests that: Government should minimise the incidence of borrowing, particularly since 92% of revenue is currently being used to service debt for mostly non-productive borrowings; Government spending in health and education should be increased significantly to at least match regional and global expenditure benchmarks. The debt to GDP ratio is not comprehensive, hence borrowing analysis should also include revenue-generating potential.
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| format | Article |
| id | doaj-art-b337119a025647d2949d070d1f073d89 |
| institution | Kabale University |
| issn | 2756-4649 |
| language | English |
| publishDate | 2023-07-01 |
| publisher | Federal University Wukari |
| record_format | Article |
| series | International Studies Journal |
| spelling | doaj-art-b337119a025647d2949d070d1f073d892025-02-10T10:01:09ZengFederal University WukariInternational Studies Journal2756-46492023-07-0171THE RELATIONSHIP BETWEEN GOVERNMENT SPENDING AND NIGERIA'S ECONOMIC GROWTH: VECTOR AUTO-REGRESSION APPROACHBenedict Azu0Agbobu Shedrack Onyeka1University of Delta Agbor, Delta StateUniversity of Delta Agbor, Delta State This study examined the relationship between government spending and Nigeria's economic growth using time series data from 1982 to 2022. Both the pairwise causality test and the Vector Auto-regression (VAR) model were used. According to the study, government spending on health and education has little effect on economic growth. It also turned out that the effect of public debt on economic growth is negligible. Consequently, the study suggests that: Government should minimise the incidence of borrowing, particularly since 92% of revenue is currently being used to service debt for mostly non-productive borrowings; Government spending in health and education should be increased significantly to at least match regional and global expenditure benchmarks. The debt to GDP ratio is not comprehensive, hence borrowing analysis should also include revenue-generating potential. https://wissjournals.com.ng/index.php/wiss/article/view/211 |
| spellingShingle | Benedict Azu Agbobu Shedrack Onyeka THE RELATIONSHIP BETWEEN GOVERNMENT SPENDING AND NIGERIA'S ECONOMIC GROWTH: VECTOR AUTO-REGRESSION APPROACH International Studies Journal |
| title | THE RELATIONSHIP BETWEEN GOVERNMENT SPENDING AND NIGERIA'S ECONOMIC GROWTH: VECTOR AUTO-REGRESSION APPROACH |
| title_full | THE RELATIONSHIP BETWEEN GOVERNMENT SPENDING AND NIGERIA'S ECONOMIC GROWTH: VECTOR AUTO-REGRESSION APPROACH |
| title_fullStr | THE RELATIONSHIP BETWEEN GOVERNMENT SPENDING AND NIGERIA'S ECONOMIC GROWTH: VECTOR AUTO-REGRESSION APPROACH |
| title_full_unstemmed | THE RELATIONSHIP BETWEEN GOVERNMENT SPENDING AND NIGERIA'S ECONOMIC GROWTH: VECTOR AUTO-REGRESSION APPROACH |
| title_short | THE RELATIONSHIP BETWEEN GOVERNMENT SPENDING AND NIGERIA'S ECONOMIC GROWTH: VECTOR AUTO-REGRESSION APPROACH |
| title_sort | relationship between government spending and nigeria s economic growth vector auto regression approach |
| url | https://wissjournals.com.ng/index.php/wiss/article/view/211 |
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