Journal of Emerging Trends in Economics and Management Sciences: Home

Abstract:
This study sets out to examine the role of government sectoral expenditure on productivity in Nigeria. The research covered the period between 1982 and 2015. Data on government sectoral expenditure and productivity were sourced from secondary sources and analysed using Dickey-Fuller Unit root test, Johansen cointegration test and Vector Error Correction Test (VECM) findings revealed stationarity of the variables as well as existence of long-run relationships with economic growth index. The findings indicate that Capital expenditures on administration and transfers exerts significant impact on economic growth in Nigeria. Capital expenditure on economic services, social and community services have not made significant impact on economic growth in Nigeria. Recurrent expenditure on all the sectors exerts significant impact on economic growth in Nigeria in the long-run. These findings have some important policy implications. It is therefore recommended that public sector financial management should be strengthened to ensure transparency in expenditure and resource allocation.

Keywords: Capital Expenditure, Recurrent Expenditure, Economic Growth, Sectoral Allocation

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