Public Expenditure and Economic Growth in Nigeria
- July 16, 2020
- Posted by: RSIS
- Categories: Economics, IJRISS
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VI, June 2020 | ISSN 2454–6186
Public Expenditure and Economic Growth in Nigeria
Otubu, Osaretin Paul
Department of Economics, Faculty of Social Sciences, University of Uyo, P.M.B 1017, Uyo Akwa Ibom State, Nigeria
Abstract: – This research was on “public expenditure and economic growth in Nigeria from 1980 to 2019. The broad objective or aim of this research is to investigate the influence of public expenditure/spending on economic growth in Nigeria – 1980 to 2019. The econometrics technique of ordinary least squares, co-integration, error correction model/mechanism and granger causal examination were employed as analytical tools. From the error correction estimation, we found that government expenditure/spending on education had a positive influence on economic ontogeny or growth and it was reliably statistically significant. Government expenditure/spending on health conforms to apriori anticipation. Public expenditure/spending was found to be necessary for influencing or impacting gross domestic/internal product. The granger causal outcome reveals that there is a causal relationship flow between government expenditure/spending on education and economic ontogeny/growth in Nigeria, and there was also causal relationship flow between government expenditure/spending on healthcare and economic growth. It was notably recommended that government/authority need to increase allotment to the educational and healthcare sectors of the economy. Training and retraining of healthcare and educational staff, and government/authority should embrace global trending technology in the educational and healthcare sectors because the entire world system is becoming digitally or technologically driven.
Key Words: public spending, education, health and economic growth
I. INTRODUCTION
The main focus of any government/administration is the well-being of its people, section 14(b) of the amended constitution of Nigeria. The major aim for expenditure by government authority or individuals is to gratify needs and essential demand. That of government, the main aperient is to satisfy the social or public welfare of its people or citizens by providing social or public goods. The consumption level or reliance on publicly provided products and services very much depends on the social and economic status of the citizens. Nigeria is a nation known for huge population under $1 for each citizen per day. It is clear that more dependence and attention will be reliance on the government/authority to provide their necessary needs like portable water, good roads network, electricity and low cost shelter etc.
Providing quality healthcare and good education is vital tool to tackle poverty even though it is necessary for national development. Having a big healthy and literate workforce is a vital step necessary for economic growth. Any nation’s future relies on quality human capital, that is why investing in education and health in any country is very vital for national development.
