Impact Of Government Expenditure On Transportation Sector And Economic Growth In Nigeria (1980-2016)

Authors: Mustapha Yusufu; Sunday Elijah; Muhammad Usain
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The study examined the impact of government expenditure on transportation sector and economic growth in Nigeria. The related literatures were reviewed. Time series data for real gross domestic product (RGDP), capital expenditure (CEX), government expenditure on transport (GEXT) and interest rate (INTR) from 1980 to 2016 are used. Unit root test result indicated that all the variables are none stationary at level but becomes stationary at first difference I(1) necessitating the use of ECM to determine the short and the long run relationship of the variables. The result of the analysis reveals that there is a long run relationship among the variables. It is therefore recommended that government should ensure that capital expenditure and recurrent expenditure are properly managed in a manner that it will raise the nation’s production capacity and accelerate economic growth.