The Role of Public Spending on Construction, Transportation and Communication on Economic Growth in Nigeria
- May 11, 2019
- Posted by: RSIS
- Category: Statistics
International Journal of Research and Scientific Innovation (IJRSI) | Volume VI, Issue IV, April 2019 | ISSN 2321–2705
Omokaro, B. E.1 and Ikpere, O. C.2
1-2Department of Statistics, Delta State Polytechnic, Otefe-Oghara, Delta State, Nigeria
Abstract: – This study focused the role of public spending on construction, transportation and communication on economic growth in Nigeria. Secondary source of data collection from the Central Bank of Nigeria Statistical Bulletin was used in this study. The regression analysis was employed for the data analysis. The findings of the study showed that expenditure on construction and expenditure on transportation & communication positively impact on economic growth. It was found that expenditure on construction significantly impact on economic growth while expenditure on transportation & communication does not significantly impact on economic growth in Nigeria within the observed period. The obtained model was found to be adequate with R-square value of 72.7% which indicates a strong adequacy of the model in estimating economic growth in Nigeria.
Keywords: Communication, Construction, Economic growth, Public Spending, Transportation
I. INTRODUCTION
Responsibilities of a government to its citizens includes; security, provision of basic amenities and to enhance growth by providing enabling environment that can drive wealth creation. Government can perform these responsibilities by efficiently allocating proportions of revenue to these sectors. This can come as expenditure on defence, education, servicing national debts and capital investment. Governments also spend on their own maintenance as well as aid other countries and so on.
Public or government expenditure, therefore is the expenses of the government in ensuring common good and that the economy is on course. According to Maku (2009), most nations are getting more involved in economic activities in their various countries and public expenditure has maintained an upward trend over time in virtually all the countries of the world.
