GOVERNMENT SIZE AND ECONOMICS GROWTH IN NIGERIA (1970-2018)

ABSTRACT

This study examined the impact of government size on economic growth in Nigeria for the period of 1981-2019. The main objective of this research work is to examine the impact of government size on economic growth in Nigeria. The study used Error Correction Mechanism (ECM) to examine the relationship between government size and economic growth in Nigeria. The study found that the level of total government expenditure is positively and significantly related to the Real GDP and exchange rate is negatively related to the Real GDP and gross fixed capital form

ation is negatively related to the Real GDP and inflation is also negatively related to the Real GDP. The study therefore recommends that conscious efforts should be taken by the government to increase budgetary allocation to productive sectors of the economy for public spending which a key factor that contributes greatly to economic growth and development. It is essential for financing infrastructure, including roads, electricity, and water. Also, excessive increase in government expenditure has to be checked. Government needs to make sure that increment in government expenditure does not hurt the economy, particularly the welfare of people within the country.