Empirical Investigation Of The Impact Of Government Spending On Economic Growth Of Government

Empirical Investigation Of The Impact Of Government Spending On Economic Growth Of Government

 Introduction

The relationship between government expenditure in the educational sector and economic growth has continued to generate series of debates among scholars.

With its large reserves of human and natural resources, Nigeria has the potential to build a prosperous economy, reduce poverty significantly, and provide health education and infrastructural services that is population needs.

Nevertheless, despite the country’s relative oil wealth, poverty is widespread, and Nigeria’s basic social indicators place it among the twenty poorest countries in the world (World Bank, 2004).

In addition, many Nigerians have continued to wallow in abject poverty, while more than  50 percent live on less than US$1 per day.

Dilapidated infrastructure (especially roads and power supply) in Nigeria is everywhere is visible sign which has led to the collapse of many industries, and has resulted in high level of unemployment.

Moreover, macroeconomic indicators like balance of payments, import obligations, inflation rate, exchange rate, and national savings reveal that Nigeria has not fared well in the last couple of years (CBN, 2009).

Although, incidence of poverty in Nigeria is much higher in rural areas tan in urban centers, the urban slum-dwellers form one of the more deprived groups in Nigeria.

The poor are those who are unable to obtain an adequate income, find a state job, own property or maintain healthy living.

Reference

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CBN statistical Bulletin, (2008), Annual Report and Statement of Account Pp.97- 99.

Ihunda C.C. (2003). Privatization as a means of constructing an Economy “the  Nigeria experience” The enterprise international research. Journal for development Vol. 5,N. 3