Impact of government expenditure on economic

The whole argument, however, centers on whether other things will remain equal. Limitations of the study There is no study undertaken by a researcher that is perfect. The various colored rectangles are different components of government spending.

Background of the study Every company operates within the internal and external environments of business. Nowadays, the relationship between government expenditure and economic growth has continues to generate sense or controversies among scholars in economic literature Inuwa, First, I want to point out something quite amusing.

The effects of this expenditure are largely unnoticeable on the citizenry Muritola The black line is not GDP growth, but is instead the sum of the various components of government spending.

IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA CHAPTER ONE

The critical yet missing piece of information in these analyses is the counterfactual, to know what the size of the economy and level of employment would have been in the alternate universe where government spending had taken a different course.

The recurrent expenditure is basically government expenses on administration such as wages, salaries, interest on loans, maintenance cost, etc. Anyway, the general view is that government expenditure notably on social and economic infrastructure can be growth enhancing although the financing of such expenditure to provide essential infrastructural facilities including transport, electricity, telecommunication, water and sanitation, waste disposal, education and health can be growth retarding Olukayode, The imperfection of any research is always due to some factors negatively affecting a researcher in the course of carrying out research.

It is against this backdrop, the study is undertaken to empirically evaluate the impact of government expenditure on economic growth in Nigeria. Although the theoretical positions on the subject are quite diverse, the conventional wisdom is that or spending is a source of economic instability or stagnation.

The underlying models that generate these estimates assume a Keynesian world, and thus cannot test whether the Keynesian model is correct. How do macroeconomic variable induce government expenditure and the economic growth in Nigeria? What is the relationship between government policies and the economic growth in Nigeria?

Research Questions What is the relationship between government real total capital expenditure and the economic growth in Nigeria?

Indeed theoretically, it is an unresolved issue. Secondary data, Data Analysis, Abstract:: Background of the study Government Expenditure no doubt is an important instrument for a government to control the economy of a nation. Empirically, while a positive and significant relationship between government spending and economic growth have been established, there are much significant negative or no relationship between an increase in government expenditure and economic growth, following these mixed findings, the research question below are being raised.

Ironically, the effect of government spending in Nigeria in relation to the economic growth is still a puzzle and an unresolved issue. Remember that unemployment shot up higher with the stimulus than the Obama team warned people would occur without the stimulus.

There is no significant relationship between government recurrent revenue and economic growth of Nigeria. We dodged a bullet, since the sequester dragged down growth so much. Statement of Research Hypotheses In order to adequately evaluate the impact of government expenditure on the economic growth of Nigeria, the null hypotheses are used as follow: The complete project work would be made avail Does Government Spending Boost the Economy?

When it goes down, it subtracts from it and hobbles the economy:the impacts of public spending on economic growth, although there have been significant advances in quantifying linkages between expenditure components, on the one hand, and economic growth on the other (see Musaba et al.

increase in government expenditure on socio-economic and physical infrastructures impact on long run growth rate.

For instance, government expenditure on health and education raises. Daniel is a former McKenna Senior Fellow in Political Economy.

Most government spending has a negative economic impact. The deficit is not the critical variable. The key is the size of government. The need to better the lots of citizens through government expenditure has raised questions on the impact of government expenditure on the economic development and growth of nations.

Does Government Spending Boost the Economy?

Does Government Spending Boost the Economy?

Stimulus boosters assume their conclusions Wednesday, December 17, Edwards seems to think that the above chart shows at least a correlation between government spending and economic growth.

After all, he wrote that the BEA chart “seems to show that government has a pretty straightforward. between government expenditure and economic growth for a group of 30 OECD countries during the period [22] used the heterogeneous panel to investigate the impact of government expenditure on economic growth.

The authors employed the GMM technique, and discovered that countries with large government expenditure tend to.

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Impact of government expenditure on economic
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