Impact of government expenditure on nigerian economic growth (1987-2017)

Thesis Abstract

Abstract
This study aims to investigate the impact of government expenditure on Nigerian economic growth from 1987 to 2017. Government expenditure is a key component of fiscal policy and plays a crucial role in influencing economic growth. The study will utilize time series data to analyze the relationship between government expenditure and economic growth in Nigeria over the past three decades. By employing econometric techniques such as the Autoregressive Distributed Lag (ARDL) model and Vector Error Correction Model (VECM), the study aims to provide empirical evidence on the short-term and long-term effects of government expenditure on economic growth. The research also seeks to determine the optimal level of government spending that maximizes economic growth in Nigeria. The findings of this study are expected to contribute to the existing literature on the subject by providing updated empirical evidence on the impact of government expenditure on Nigerian economic growth. The results will have important policy implications for policymakers in Nigeria in terms of formulating effective fiscal policies to promote economic growth and development. The study hypothesizes that government expenditure has a significant positive impact on economic growth in Nigeria. However, the relationship may not be linear, and there may be an optimal level of government spending beyond which further increases could have diminishing returns. The study will also consider the composition of government expenditure, including its allocation towards infrastructure development, social services, and other sectors, to assess their differential impacts on economic growth. The research methodology will involve collecting data on government expenditure, economic growth indicators such as GDP growth rate, inflation rate, and other relevant variables from reputable sources such as the World Bank, International Monetary Fund (IMF), and the Central Bank of Nigeria. The data will be analyzed using statistical software such as EViews or STATA to estimate the econometric models and test the research hypotheses. Overall, this study is significant as it addresses an important policy issue in Nigeria by exploring the relationship between government expenditure and economic growth. The findings will provide valuable insights for policymakers, economists, and researchers interested in understanding the dynamics of fiscal policy and its implications for economic development in Nigeria.