Authors : P.B. Eregha, P.I. Sede and F.O. Onotaniyohwo
Abstract: This study investigated the effect of the composition of public expenditure on growth in Nigeria. A vector error correction modeling approach was adopted. Annual time series data for the study covering the period 1970-2008 were extracted from the Central Bank of Nigeria Statistical Bulletin. The estimation results revealed that expenditure on transfers significantly impacted growth negatively in Nigeria. However, expenditures on economic services and social community services were found to impact growth positively. Researchers therefore recommend that proper attention be given to expenditure on social and community services as they form greater part of human capital formation that are vital to growth and development.
P.B. Eregha, P.I. Sede and F.O. Onotaniyohwo, 2012. Does the Composition of Public Expenditure Matter for Growth in Nigeria: A Vector Error Correction Approach. Pakistan Journal of Social Sciences, 9: 125-131.