GOVERNMENT CAPITAL EXPENDITURE IN ECONOMIC SERVICES’ SECTOR AND ECONOMIC GROWTH IN NIGERIA

Abstract

This study examined the impact of government capital expenditure in economic services’ sector on Nigeria’s economic growth between 1981 and 2020, using ARDL model. The data obtained were secondary sources, CBN Statistical Bulletin, National Bureau of Statistics.  The dependent variable of the study is Gross Domestic Product (GDP), proxy as economic growth, while Capital Expenditure on Agriculture (AGEX), Capital Expenditure on Manufacturing, Mining and Quarrying (MGEX), were the independent variables. The results of the findings reveal that both AGEX and MGEX have positive relationship with GDP and at the 5% significant level, are statistically significant. The study therefore recommends that since spending in the areas of infrastructural facilities is a good determinant of output growth, government should ensure that basic infrastructural facilities needed in these sectors (agriculture and manufacturing, mining and quarrying) such as good roads, storage facilities stable electricity and so on, are provided