ABSTRACT

This research work tries to examine the impact of government expenditure on economic growth in Nigeria from 1980-2015, using gross domestic product (GDP) as the dependent variable, capital expenditure, recurrent expenditure and inflation as independent variables. This work was done using ordinary least square (OLS), regression technique with the aid of computer software, for a 1980-2015 time series data. Engel and Granger two step method was also employed in this research work. This study found that capital expenditure has a positive relationship with economic growth in Nigeria, this relationship is in conformity with economic theory. The ADF unit root also showed that the variables in this research work are not stationary at first difference. The study recommends that government should ensure and encourage the education and health sectors and also provide the basic social amenities for the general public through increased funding and as well as ensuring that these resources are properly managed and used for the development and provision of this services to help improve the standard of living of people.