ABSTRACT
The work was on the impact of Government Expenditure on Nigeria Growth (1981 – 2010) dealing with secondary data from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics Regression Analysis with (OLS) technique was used. Our findings indicate that there is a positive correlation between Inflation, Money Supply, Government Consumption Expenditure. While Money Supply and LGDP-I has a positive impact on the dependent variable (GDP). But the GE (Government Expenditure) and M2 (Money Supply) has a significant impact on the model with 2.800 and 0.190 respectively. Also the model shows a good fit at 96% of the dependent variable accounted for by independent variable.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Following the classical prescription before the great depression of the
1930’s the role of government in the economy were Limited to the few of services like law and order, natural security and promotion of property rights. Adam Smith (1776) in his discussion of the proper role of the government listed three factors. First “protecting the society from the violence and invasion of other independent societies, secondly, protecting as far as possible every member of the society from injustice or oppression every other member and thirdly, erecting and maintaining those public work which through they may be in the highest degree advantages to a great society are however of such a nature that the profit could never repay the expense to ay individual or small group of individual this list is referred to as the care function of the government. Today however, the economic role of the government has expanded to include consumption and investment expenditure.
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