ON THE INFLUENCE OF CAPITAL EXPENDITURE AND IMPLICIT PRICE DEFLATOR ON ECONOMIC GROWTH IN NIGERIA BETWEEN 2001 – 2020
DOI:
https://doi.org/10.33003/fjs-2021-0504-811Keywords:
Goss Domestic Product (GDP), Capital Expenditure, Economic Growth, Price Deflator, Inflation, DeflationAbstract
Capital expenditure involves spending on assets. It has a lasting impact on the economy and helps provide a more efficient, productive economy. There is the need to examine the impact of government capital expenditure and implicit price deflator on economic growth in Nigeria. The data used is secondary in nature from Nigeria Bureau of Statistics. The statistical package used is SPPS Version 23. The objectives of this research work includes the determination of a model for predicting the growth of the GDP, to authenticate and validate the model for use and finally to predict the GDP given the revenue and implicit price deflator (IPD). From the analysis on multiple regression, it was observed that the p <0.05, indicating that the model is significant, also Adjusted R2 (0.984) depicts that 98.4 percent of the variation in GDP is explained by the model; hence the model is seen to be adequate. The findings also revealed that IPD with p <0.05 is the only variable contributing to GDP for the period under study. It is therefore recommended that economic policy should be designed in such a manner that Government expenditure on per capital will reflect on growth of the domestic economy
References
Afonso, W.B. (2014). Fiscal illusion in state and local finance – A hindrance to transparency. Sage journals , 46(3), 219 – 228
Akpan,H. (2005), “Government expenditure and Economic Growth in Nigeria: A Disaggregated Approach†CBN
Anyafor,G. (1996) “Public Expenditure and Economic Growthâ€, African Journal of Economic Policy, 145: 45-66
Anyanwu,P. (1998)“Government Expenditure and Economic Growth in Nigeriaâ€. Financial Review, 43,3
Aregbeyen, O. (2007), “Public Expenditure and Economic Growthâ€, African Journal of Economic Policy, 1 59: 645-661
Aregbeni, O., & Kolawole, B. O(2015). Oil Revenue, public spending and economic growth relationships in Nigeria. Journal of sustainable Development, 8(3), 114 – 123
Babatunde, S.A., & Dandago, K.I(2014). Internal control system deficiency and capital project mismanagement in the Nigerian public sector. Procedia-Social and Behavioural Sciences., 164, 208 – 221
Barro, R. (1990), “Government Spending in a Simple Model of Endogenous Growthâ€, Journal of Political Economics,98: pp103-125
Barro, R. and D. Sala-i-Matin (2005), “Public Finance in Models of Economic Growthâ€, Review of Economic Studies, 51, 4
Barro, R. and V. Grilli (2004), European Macroeconomics, London: Macmillan
Devarajan, P. (2006) Fiscal Policy in Europe, 1991-2003. An Evidence-based Analysis, CEPR, London.
Donald, K. & Shuanglin, F. (2010). The Differential Effects on Economic Growth of Government Expenditures on Education, Welfare, and Defense. Financial Review, 43
Folster, K & Henrekson, G.(1999).Public Sector Growth, An Econometric Test of Wagner’s Lawâ€Economic and Financial Review, Vol.35, No.3, 1997. Central Bank of Nigeria.
Gregorious, F. & Ghosh, H. (2007), “Fiscal policy in an Endogenous growth model with public capital and pollution†Japanese economic review, 56 (6): 67-84
Gupta C, Baldacci, E., & C. Mulas-Granados (2002), “Expenditure Composition, Fiscal Adjustment, and Growth†Journal of Economic Management, Vol. 2 No. 1.
Helms, U. (2005), “Performance measurement for Green supply chain management,bench marking: Journal of Economic Education,12, 330-353.
Kano,A., Ozurumba, H., & Ihemefe, U. (2014), “African development bank group working paper No. 119, Migration pattern trend and policy issues in Africaâ€.
Laudau D. L. (1986), “Government Expenditure and Economic Growth: A Cross Country Study’ Southern Economic Journal, 49: 783-792
Levine, R & D. Renelt (1992), “A Sensitivity Analysis of Cross-Country Growth Regressionsâ€, American Economic Review, 82 (4), 942 – 963
Miller, S. M. & F.S Russek (1997), “Fiscal Structures and Economic Growthâ€, Economic Inquiry, 35, 603 – 613
Osaze, P (2000)“Government Expenditure and Economic Growth: A Cross Country Study’ Southern Economic Journal, 50: 83-92
Soeze, P. (2005). “The tortures of journalism†Daily Champion, p26â€.
Pagano, H. (1995).“The Relationship between Government Expenditures and Economic Growth in Thailandâ€. Journal of Economics and Economic Education Research.4,(2)
Published
How to Cite
Issue
Section
FUDMA Journal of Sciences
