Igbinovia, B.

Okunmahie, F. O.

Abstract

This study looked at how public investment affected Nigeria's real sector growth between 1990 and 2022. Data for the study were obtained from World Bank, World Development Indicators (WDI), and the Central Bank of Nigeria (CBN) Statistical Bulletin 2022. Using the Augmented DickeyFuller (ADF) method, a unit root test was performed on the developed model. The variables were integrated in mixed order I (0) and I (1), according to the results of the Augmented Dickey-Fuller unit root test. The study utilized the Auto- regressive Distributive Lag (ARDL) model to ascertain if there is a long-run relationship between public investment and real sector growth using the bound test. The Auto- regressive Distributive Lag (ARDL) bound test result established a long-run relationship between public investment and real sector growth, The Result from Auto-regressive Distributive Lag (ARDL) reported that public expenditure on economic service (PXES) is positive and statistically significant with growth rate (GRT) in the long-run as well as the current year period of the short-run. However, governmental spending on administrative services (PXAS), and government expenditure on social service (PXSS) are insignificant with growth rate (GRT) both in the long-run and short-run. It was recommended amongst others that the federal government should increase its expenditure on administrative services which will lead to increased funding of defense and internal security. An increase in administrative expenditure will ensure security in the country thereby allowing investors in the real sector (agriculture, industry, and service) to carry out productive activities.

   

Full-Text:

---

   

Published: 2024

---

   

Issue:

Articles

---