IZEKOR Andrew Osaretin, PhD
&
UHUNMWANGHO Monday, PhD
Department of Banking and Finance,
Faculty of Management Sciences,
University of Benin, Benin City, Nigeria
For Correspondence, email: andrew.izekor@uniben.edu.
Abstract
This study empirically examined the short run and long run analyses of government capital expenditure on the Nigerian economic growth for the period of the years, 2007 to 2022. The diagnostic test and the inferential analyses for the data were performed, using the single time series econometric techniques in consideration of ex-post facto research design. The stand-in variables were capital expenditure and gross domestic product, as data for the analyses were obtained from the statistical bulletin of the Central Bank of Nigeria. Based on the data analysed, the study revealed evidence of positive but insignificant statistical relationship between the Nigerian gross domestic product and capital expenditures, during the short run and long run bases. This inferred that the changes in economic growth of Nigeria, during the considered period were due to the extent of capital expenditures by the Nigerian government. The study strongly advocates for government at all levels, to focus more on capital expenditures, in order to stimulate economic growth and as well, government at all levels should as a matter of consideration, rotate the capital seat of power amongst the states, cities and local wards in the country to enhance the gradual spread of development across the country.
Keywords: Capital expenditures, economic growth, long run, Nigerian, short run.
