The Growth Stimulating Role of Capital Expenditure Components of the Federal Budget of Nigeria; Real or Imagined?

  • Dumani Markjackson Department of Banking and Finance, federal polytechnic, Ekowe, Bayelsa State, Nigeria
  • Siaisiai Siloko Timipa Department of Business Administration, Federal Polytechnic, Ekowe, Bayelsa State, Nigeria
  • Ebikila suoyai Department of Marketing, Federal Polytechnic, Ekowe, Bayelsa State, Nigeria

Abstract

The paper examined the impact of the capital expenditure components on output growth in Nigeria. The objective of the study was to determine the impact of Administration, Economic Services, Social Community Services, and Transfer payments on Real Gross Domestic Product in Nigeria. To achieve this, the model was built following the multiple regression example. Furthermore, the ordinary least square technique was employed for the estimation. The results reported that every increase in administrative expenditure and transfer payments lead to increase in national output in Nigeria, while for economic services and social community services; the impact is nonlinear and insignificant. Consequently, the paper suggests efficient resource allocation and implementation of budgetary provisions coupled with real time monitoring and checks on social works by engaging the citizenry through various social media platforms.

Abstract

The paper examined the impact of the capital expenditure components on output growth in Nigeria. The objective of the study was to determine the impact of Administration, Economic Services, Social Community Services, and Transfer payments on Real Gross Domestic Product in Nigeria. To achieve this, the model was built following the multiple regression example. Furthermore, the ordinary least square technique was employed for the estimation. The results reported that every increase in administrative expenditure and transfer payments lead to increase in national output in Nigeria, while for economic services and social community services; the impact is nonlinear and insignificant. Consequently, the paper suggests efficient resource allocation and implementation of budgetary provisions coupled with real time monitoring and checks on social works by engaging the citizenry through various social media platforms.

Published
2018-06-13
How to Cite
Markjackson, D., Timipa, S., & suoyai, E. (2018). The Growth Stimulating Role of Capital Expenditure Components of the Federal Budget of Nigeria; Real or Imagined?. Journal of Business Management and Economics, 6(06), 01-08. https://doi.org/10.15520/jbme.v6i06.2175
Section
Articles