Government Expenditure on Primary Welfare Sector and Economic Growth of Nigeria: A Correlation Analysis

• Post by: eraf
• November 20, 2022
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ABSTRACT

The study analysed the relationship between government expenditure on primary welfare sector and economic growth of Nigeria. The specific objectives of the study are to ascertain the relationship between Government Expenditure on Education (GEE), Government Expenditure on agriculture (GEA) and Government Expenditure on Road Construction (GERC) with Gross Domestic Products (GDP) in Nigeria. Time series data from 2010 to 2021 were extracted from the Central Bank of Nigeria Statistical Bulletins and also Nigeria Budget Office. The data were analysed using Pearson’s Correlation Analysis. Findings from the study suggest that GEE significant of 0.000 and correlation coefficient of 0.924 showed that GEE positively and very strongly relates with GDP of Nigeria; GEA positively and strongly relates with GDP in Nigeria with a significant value of 0.002 and a Pearson correlation coefficient of 0.791 while the relationship between GERC and GDP is positive, but weak having a significant value of 0.051 and correlation coefficient of 0.574. The implication of these findings is that GDP of the country grows with increase in primary welfare sector expenditure. The study recommends that the Federal Government of Nigeria should improve educational and agricultural sector of the economy and grow the country’s GDP by allocating more funds to the sectors during its annual budgets for quality education, improve food supply, food security and promote the nation’s export. It was finally recommended that the government should vote more funds for road construction and monitor the effective and efficient use of the fund. Good road network will ease transportation and bring down cost of production per unit and ultimately grow the country’s gross domestic products.

Keywords: Government Expenditure; Primary Welfare Sector; Economic Growth of Nigeria; Correlation Analysis

Authorship
¹Nduche, Ekene Chinyelu, ²Inyiama, Oliver Ike & ³Ugwuanyi, Uche B.

FULL PDF | DOI: https://doi.org/10.5281/zenodo.7339097