GOVERNMENT EXPENDITURE ON TRANSPORTATION AND ECONOMIC DEVELOPMENT IN NIGERIA
Keywords:
Economic development, Economic growth, Capital expenditure, Recurrent expenditure Transportation ExpenditureAbstract
This study is an assessment of the relationship between expenditure of the federal government and economic development in Nigeria. The main sources of analytical data were from secondary sources collected from the Central Bank of Nigeria statistical Bulletin and United Nations Development Programme (UNDP). Both descriptive and inferential statistics (such as Augmented DickeyFuller unit root test method) were used for statistical analysis. The stationary series were also subjected to long run cointegrating test using Engle-Granger residual-based technique. Statistical results revealed no long run cointegrating relationship between government recurrent expenditure components and per capita income. However, the Ordinary Least Square methodology provides insightful short run findings indicating a positive and significant relationship between transport and per capita income. We conclude that recurrent expenditure of the government does not meaningfully support development beyond the short run. Government expenditure in transport gives a profitable good account of the wealth dedicated to their operation. It is thus recommended that transportation expenditure should be revisited by the budget office or Authority to Incur Expenditure (AIE) department of the government. It is important that funds appropriated for transportation spending be honestly expended. Put differently, the manages of the economy should devote more resources to transportation
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