An analysis of government spending and economic growth in Nigeria

This  research  studies   is  undertaken  to  examine  the  impact  of  government  spending  on  economic   growth  in  Nigeria.  Government  spending  is  thought  to  be  growth   enhancing   especially  when  it  is  productive   in  nature.    The time series data for the period between (1970-2010) was used in this study. Data for this study were obtained from   the Central Bank of Nigeria statistical   Bulletin.   Some  selected  macro  economic  variables  such  as  government  expenditure,  educational   expenditure,  health  expenditure,   government    investment   expenditure  and  government  consumption  were  captured  in  the  model,  after  which  the   model  was  estimated.  The  results   shows  that  overall  government   expenditure   on  health  and   transport  are   positive   and  significantly  related  to economic growth.   While   the   expenditure on agriculture had an increase growth of   0.7%.  This is as a result of the  current  diversification  drive  of  the   economic  base  of  the  country.  It  is   therefore  important  that  government  should  continue  to  spend  more  in  the economy   to  push   it  to  the  desired  level.   Government   should   also  spend  more  on  health   care  service, transportation  and  educational  sector  of  the  country  for  better  developed  health  and   educational sector of the economy.