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Rivers State University, Port Harcourt.
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| Title: | Government Spending, Trend Causes And Consequences In Nigeria |
| Author(s): | MOMODU Austin Ayodele, ISUKUL Araniyar & ANINWAGU Victor Okechukwu |
| Abstract: | This study looks at the total government spending, trend, causes and consequences in Nigeria between 1981 and 2019. The study made use of time series data gathered from the Central Bank of Nigeria Statistical Bulletin and Federal Ministry of Finance spanning (19812019) 39 years. The Augmented DickeyFuller (ADF) unit root test were used in testing for the variables properties while ordinary least squared (OLS) was used for data analysis. The unit root tests showed that all the variables are nonstationary at levels, but become stationary at first difference. This implies that they are integrated of order one. The cointegration test results showed evidence of long run relationship of government spending and the underlying indicators. The findings shows that one percentage increase of government spending will boost consumption, economic growth, capital formation, and transfer payment by 0.344%, 0.201%, 0.204%, and 9.662% respectively. The study recommends that government should instill discipline on its spending to avoid unnecessary spending in the society, there should be adequate monitory of government spending to ensure that funds are used for what they are mapped for to ensure that expected results are achieved in the economy, there should be higher budgetary allocation to capital projects that will leads to growth and development in the long term, strong effective and efficient mechanism should be put on ground to ensure that the poor in the society benefit from the spending of the federal government. |
| Keywords: | Government Spending, Consumption, Gross Capital Formation, Transfer Payment |
| Journal: | Economic and Social Science Review (ESR) |
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