MAKWE, Emmanuel Uzoma
Department of Finance and Banking
Faculty of Management Sciences
University of Port Harcourt
IBECHIOLE, Onyekachi Chikamnele
Department of Banking and Finance
Faculty of Management Sciences
Nnamdi Azikiwe University Awka
MOJEKWU, Ogechukwu Rita
Department of Finance and Banking
Faculty of Management Sciences
University of Port Harcourt
OLADELE, Akeeb Olushola
Department of Economics
Faculty of Social Sciences
University of Port Harcourt

This study examined government expenditures and economic growth in Nigeria. Government expenditure
was proxied by government capital expenditure and government recurrent expenditure while inflation rate
was used as a check variable in the study. On the other hand, economic growth was measured using real
gross domestic product. Relevant data were extracted from the annual Statistical Bulletin of the Central
Bank of Nigeria. Unit root test was conducted using Augmented Dickey Fuller method which revealed that
the variables were integrated at first difference except for inflation rate which was integrated at level.
Cointegration test was also conducted to determine long run relationship. More so, the ARDL ECM test
was carried out to ascertain the relationship among the variables. The results revealed that a significant
relationship exist between government capital expenditure and economic growth; government recurrent
expenditure and economic growth; inflation and economic growth. Based on the findings of the study, the
study recommends amongst others, that wasteful spending should be minimized. More so, proper
accounting and blocking of leakages is a necessity for economic improvement.

Keywords: Government expenditures; economic growth; capital expenditure; recurrent expenditure; gross
domestic product.

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