An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy
TLDR
In this article, the impact of public expenditures on economic growth was revisited 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.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.read more
Citations
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Posted Content
Government spending in a simple model of endogenous growth
TL;DR: This article extended these models to include tax- financed government services that affect production or utility, and showed that growth and saving rates fall with an increase in utility-type expenditures; the two rates rise initially with productive government expenditures but subsequently decline.
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Government Spending in a Simple Model of Endogenous Growth
TL;DR: In this article, tax-financed government services that affect production or utility are extended to include tax-supported government services, and the two rates rise initially with productive government expenditures but subsequently decline with an increase in utility-type expenditures.
Posted Content
Growth in a Time of Debt
TL;DR: This paper study the relationship between government debt and real GDP growth and find that the relationship is weak for debt/GDP ratios below a threshold of 90 percent of GDP, while for higher levels, growth rates are roughly cut in half.
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Growth in a time of debt
Carmen Reinhart,Kenneth Rogoff +1 more
TL;DR: This paper study the relationship between government debt and real GDP growth and find that the relationship is weak for debt/GDP ratios below a threshold of 90 percent of GDP, while for higher levels, growth rates are roughly cut in half.