ABSTRACT
This research work presents a study investigating the impact of government spending patterns on economic growth in Nigeria. The theoretical framework draws from Keynesian economics, which emphasizes the role of government intervention in stimulating economic activity through increased spending and aggregate demand.
The study specifies an analytical model to assess the relationship between real GDP and explanatory variables such as government spending on education, health, public debt servicing, and money supply. It employs econometric techniques including unit root tests, cointegration analysis, and an error correction model to analyze the time series data.
The empirical findings suggest a significant positive relationship between government spending on education and economic growth in Nigeria. However, the relationship between health spending and growth lacks statistical significance. Public debt servicing exhibits a significant negative impact on economic growth, highlighting the importance of prudent debt management. The role of money supply in influencing growth requires further investigation.
The study provides policy implications emphasizing the need for balanced fiscal policies, prioritizing investments in education and human capital development, enhancing healthcare spending effectiveness, strengthening monetary policy transmission, prudent debt management, and implementing structural reforms to foster sustainable economic growth in Nigeria.
