This research studies is undertaken to examine the impact of government spending on economic growth in Nigeria. Government spending is thought to be growth enhancing especially when it is productive in nature. The time series data for the period between (1970-2010) was used in this study. Data for this study were obtained from the Central Bank of Nigeria statistical Bulletin. Some selected macro economic variables such as government expenditure, educational expenditure, health expenditure, government investment expenditure and government consumption were captured in the model, after which the model was estimated. The results shows that overall government expenditure on health and transport are positive and significantly related to economic growth. While the expenditure on agriculture had an increase growth of 0.7%. This is as a result of the current diversification drive of the economic base of the country. It is therefore important that government should continue to spend more in the economy to push it to the desired level. Government should also spend more on health care service, transportation and educational sector of the country for better developed health and educational sector of the economy.
Prof. Dr. Bilal BİLGİN