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Rivers State University, Port Harcourt.
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| Title: | Consumption Expenditure, Government Borrowing and Living standard in Nigeria |
| Author(s): | Nwikina Christian Gbarawae & Thankgod Tonye |
| Abstract: | This study covered consumption expenditure, government borrowing and living standard in Nigeria from 1985 to 2021. CBN Statistical Bulletin provided the data. Unit root test on the formulated models used Augmented Dickey-Fuller unit root tests. The ADF result showed that the variables were stationary at level 1(0) and first difference I (1). This created a necessity for using the Autoregressive Distributive Lag (ARDL) Model. From the bound test. Consumption expenditure, government borrowing and living standard are related in the long run. The findings went further to state that GCEX is positive and significantly correlated with PCI in the short-run while HCEX as well as GEDT reported a negative but significant relationship with per capita income (PCI). Eventually, the conclusion was reached that government domestic debt (GDDT) is positive and significant with per capita income (PCI) in the short-run. The conclusion was that in Nigeria there exists a strong relationship between consumption expenditure, government borrowing and living standard. It was recommended amongst others that the federal through should access bulk of the loans on domestic financial institutions, this will help the financial institutors to expand on their outlet, spread financial services more citizens, create jobs which will help improve the welfare of the people through increase wages and salaries of worker. |
| Keywords: | Per Capita Income, Government Consumption Expenditure, Household Consumption Expenditure, Government |
| Journal: | Economic and Social Science Review (ESR) |
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