Vol 3, No 1 (2015)
Comparative Analysis of Sectorial Civilian and Military Governments Expenditures on Economic Growth in Nigeria: ARDL Approach
Babalola BTA, Salako M. A., Yusuf S. A., Egbekunle S. O.
Abstract
This study empirically compared the impact of government expenditures on adjudged critical sectors on economic growth between the military and civilian period in Nigeria. It employs quantitative analysis by the use of Auto-Regressive Distributed Lag model to estimate both short-run and long run impact of Government expenditures on economic growth between these periods with the aid of E-View 7. The study reveals that during the military era government expenditures on Education, Agriculture, Defense have positive and significant impacts on the economic growth in the long-run. Government expenditures on Defense and Agriculture were retarding the growth in the short run. While, during the democratic system, Government expenditures on Agriculture and Transport/Communication sectors promote growth in Nigeria both in the long run and short run. The government expenditures on Education and Defense have significant negative impacts on the economy in the long run. The study concludes that the reason for the failure of public expenditures to achieve the fiscal objectives is not unconnected to the fact that the level of corruption is outrageous to the extent that if it is not at par with corruption during the military regime it surpasses it. Consequently, the study decries a policy prescription that the government expenditures on these sectors should be increased except in the education sector to meet the UNDP recommendations. The government should avoid the proliferation of anti-graft agencies but strengthen the available ones to carry out their functions diligently without political interference.
Full text: 
PDF
Keywords
Sectorial Government Expenditures; Civilian and Military Regime; Economic Growth; Auto-Regressive Distributed Lag (ARDL) Model
Publication information
Volume 3, Issue 1
Year of Publication: 2015
ISSN: 1857 - 8721
Publisher: EDNOTERA
How to cite
Babalola BTA, Salako M. A., Yusuf S. A., Egbekunle S. O.: Comparative Analysis of Sectorial Civilian and Military Governments Expenditures on Economic Growth in Nigeria: ARDL Approach. Journal of Applied Economics and Business, Vol 3, No. 1, 52-73. (2015)