Asymmetric Impact of Government Expenditure on Economic Growth in Nigeria

Abstract

"The study investigates asymmetric impact of government expenditure on the economic growth of Nigeria using secondary data that spans through 1981 through 2018. In capturing the asymmetric impact, the study adopted the Non-Linear Auto-regressive Distributed Lag (NARDL) model. Government expenditure components (recurrent and capital expenditure) were decomposed to positive and negative changes due to government review. From the result, it was confirmed that in the short-run, both positive and negative changes in recurrent and capital expenditure had a significant positive impact on economic growth in Nigeria at different time lag. In the long-run, positive changes in recurrent expenditure have a negative impact on economic growth, while negative changes have a positive significant impact on economic growth in Nigeria. Positive changes in capital expenditure have a positive impact on economic growth, while negative changes has a negative 5% significant impact on economic growth. It was concluded from the findings that government expenditure plans has a significant impact on the economic growth of Nigeria in the short-run and long-run. Therefore, it is recommended that government should rebalance its plans between capital and recurrent expenditure to enhance its growth target."

Global Uncertainty, Climate Change and the Unemployment-Economic Growth Relationship in Nigeria

“…The result is in tandem with Wensheng et al (2017) and Ozturk and Sheng (2017) that global uncertainty produces large and persistent negative effect on growth. This result supports the finding of previous studies like Omitogun and Longe (2017), Akuthson et al (2018), Dayıoğlu and Aydın (2020) and Danjuma et al (2021) that unemployment remains one of the most challenges hindering the attainment sustainable growth in Nigeria. Moreover, climatic change variables used in this study like temperature and rainfall has negative and significant effect on economic growth.…”

The Role of Capital Expenditure Allocation in Mediating Regional Financial Performance on Regional Economic Growth Aceh Province

“…This could be the answer to the initial phenomenon where economic growth in Aceh province was always below the average economic growth in the Sumatra island cluster. This confirms previous research that more government spending in South Africa does not result in the country's economic growth, which is contrary to the Keynesian viewpoint (Omitogun et al, 2023).…”