Government Expenditure and its Effect on the Industrial Sector in Nigeria

Abstract

This study examined the effect of government expenditure on the growth of the industrial sector in Nigeria. A regression analysis was applied in the analysis of the data. The study found that government capital expenditure has positive and significant effect on the industrial sector; tax has positive and significant effect on the industrial sector; monetary policy rate has positive and significant effect on the growth of the industrial sector, while real interest rate has a negative and no significant effect on the growth of the industrial sector. From the findings, we conclude that government policy has significant effect on the growth of the Nigerian industrial sector. It recommends that government fiscal policies such as public expending should be directed toward improving the quality of infrastructures in the country, especially the power sector, so that the cost of production can reduce. Government should examine should create an enabling environment with the right infrastructure, improve the security situation and reduce the epileptic power supply related issues. Also, government should examine its monetary policy variables such as interest rate and monetary policy rate. Furthermore, to promote growth, government should develop the industrial sectors of the economy through its capital expenditure.

Empirical Analysis of Monetary Policy and Economic Growth in Nigeria (1990-2022)

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Monetary Policy Shocks and Economic Growth: Evidence From SVAR Modelling

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Green Energy and Environmental Impact on the Industrial Sector in 33 High-Income Countries

“…The review expects to animate further discussion inside the scholastic local area, especially concerning momentary ramifications. Ozuzu and Isukul (2021) further investigate the effect of government spending on Nigeria's assembling area. Through relapse investigation, the review presumes that administration capital uses and tax collection positively and significantly affect the modern area.…”