ON THE INFLUENCE OF CAPITAL EXPENDITURE AND IMPLICIT PRICE DEFLATOR ON ECONOMIC GROWTH IN NIGERIA BETWEEN 2001 – 2020
Abstract
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
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