An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy
Abstract The impacts of public expenditures on economic growth have been revisited in this paper with respect to capital expenditure, recurrent expenditure and the government fiscal expansion in line with support for the budgetary allocations to various sectors in the context of the Nigerian economy...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2020-02-01
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| Series: | Journal of Economic Structures |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40008-020-0186-7 |
| _version_ | 1818615821965983744 |
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| author | Stephen Taiwo Onifade Savaş Çevik Savaş Erdoğan Simplice Asongu Festus Victor Bekun |
| author_facet | Stephen Taiwo Onifade Savaş Çevik Savaş Erdoğan Simplice Asongu Festus Victor Bekun |
| author_sort | Stephen Taiwo Onifade |
| collection | DOAJ |
| description | Abstract The impacts of public expenditures on economic growth have been revisited in this paper with respect to capital expenditure, recurrent expenditure and the government fiscal expansion in line with support for the budgetary allocations to various sectors in the context of the Nigerian economy. Pesaran’s ARDL approach has been applied to carry out the impact analysis using annual time-series data from 1981 to 2017. Empirical findings support the existence of a level relationship between public spending indicators and economic growth in Nigeria. Incisively, recurrent expenditures of government were found to be significantly impacting on economic growth in a negative way while the positive impacts of public capital expenditures were not significant to economic growth over the period of the study. Further results from the Granger Causality Test reveal that fiscal expansion of the government that is hinged on debt financing is strongly granger causing public expenditures and domestic investment with the latter also Granger causing real growth in the economy. We, therefore, provide some important policy recommendations following the results of the empirical analysis. |
| first_indexed | 2024-12-16T16:40:00Z |
| format | Article |
| id | doaj.art-86e9be02b65145c798cb36bc041fce78 |
| institution | Directory Open Access Journal |
| issn | 2193-2409 |
| language | English |
| last_indexed | 2024-12-16T16:40:00Z |
| publishDate | 2020-02-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Journal of Economic Structures |
| spelling | doaj.art-86e9be02b65145c798cb36bc041fce782022-12-21T22:24:21ZengSpringerOpenJournal of Economic Structures2193-24092020-02-019111310.1186/s40008-020-0186-7An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economyStephen Taiwo Onifade0Savaş Çevik1Savaş Erdoğan2Simplice Asongu3Festus Victor Bekun4Department of Economics, Şelcuk UniversityDepartment of Economics, Şelcuk UniversityDepartment of Economics, Şelcuk UniversityAfrican Governance and Development InstituteFaculty of Economics Administrative and Social Sciences, Istanbul Gelisim UniversityAbstract The impacts of public expenditures on economic growth have been revisited in this paper with respect to capital expenditure, recurrent expenditure and the government fiscal expansion in line with support for the budgetary allocations to various sectors in the context of the Nigerian economy. Pesaran’s ARDL approach has been applied to carry out the impact analysis using annual time-series data from 1981 to 2017. Empirical findings support the existence of a level relationship between public spending indicators and economic growth in Nigeria. Incisively, recurrent expenditures of government were found to be significantly impacting on economic growth in a negative way while the positive impacts of public capital expenditures were not significant to economic growth over the period of the study. Further results from the Granger Causality Test reveal that fiscal expansion of the government that is hinged on debt financing is strongly granger causing public expenditures and domestic investment with the latter also Granger causing real growth in the economy. We, therefore, provide some important policy recommendations following the results of the empirical analysis.https://doi.org/10.1186/s40008-020-0186-7NigeriaFiscal policiesEconomic growthDebt to GDP ratioARDL models |
| spellingShingle | Stephen Taiwo Onifade Savaş Çevik Savaş Erdoğan Simplice Asongu Festus Victor Bekun An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy Journal of Economic Structures Nigeria Fiscal policies Economic growth Debt to GDP ratio ARDL models |
| title | An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy |
| title_full | An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy |
| title_fullStr | An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy |
| title_full_unstemmed | An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy |
| title_short | An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy |
| title_sort | empirical retrospect of the impacts of government expenditures on economic growth new evidence from the nigerian economy |
| topic | Nigeria Fiscal policies Economic growth Debt to GDP ratio ARDL models |
| url | https://doi.org/10.1186/s40008-020-0186-7 |
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