University Links: Home Page | Site Map
Covenant University Repository

Nexus between Public Finance and Economic Growth in Nigeria

CHIMEZIE, ONYEDIKACHI PEACE and Omankhanlen, A. E and Eriabie, Sylvester O. (2020) Nexus between Public Finance and Economic Growth in Nigeria. WSEAS TRANSACTIONS on BUSINESS and ECONOMICS, 17. pp. 184-194. ISSN E-ISSN: 2224-2899

[img] PDF
Download (921kB)


Public finance deals with various roles and activities of the government aimed at ensuring economic growth. This study assessed the nexus between public finance and economic growth in Nigeria. It adopts the theory of Peacock; it states that a country could evolve after encountering social disturbances. Such financial difficulties are expected to increase government spending leading to national growth. Secondary data sources gotten from CBN and World Development Indicators are used. Data analysis is done using Unit Root test, Auto-Regressive Distributed Lag (ARDL) and granger causality technique for period 1981 to 2017. Results of the study indicate that Government revenue (GREV) has a major effect on development of Nigeria’s economy, Government expenditure (GEXP) has not substantially but significantly impacted economic growth via the outcomes of Recurrent expenditure(REXP) and capital expenditure (CEXP), and in conclusion Gross domestic savings (GDS) has not impacted Nigeria's economic growth. The recommendation made based on the findings are; In order to ensure aggregate productive public expenditures, the government of Nigeria should ensure that the composition of public sector outputs is optimal. This can be done by ensuring it does not produce either too much of one good or too little of another,the government of Nigeria through various investment schemes and programs that are tax exempt can promote the practice of saving in the country. Investing in such saving schemes can considerable promote individuals tax savings which in turn increases gross domestic savings.

Item Type: Article
Uncontrolled Keywords: Public finance, government revenue, nexus, economic growth.
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 02 Jun 2021 16:03
Last Modified: 02 Jun 2021 16:03

Actions (login required)

View Item View Item