Open AccessIMPACT OF FEDERAL GOVERNMENT EXPENDITURE IN EDUCATION ON NIGERIA ECONOMIC GROWTH (1980 – 2018)
Author(s) -
OS Bewaji,
SA Agbonjinmi,
ST Omojuyigbe
Publication year - 2021
Publication title -
international journal of research in education and sustainable development
Language(s) - English
Resource type - Journals
ISSN - 2782-7666
DOI - 10.46654/ijresd.11714
Subject(s) - economics , aggregate expenditure , short run , government (linguistics) , spurious relationship , government spending , government expenditure , order (exchange) , johansen test , real gross domestic product , cointegration , welfare , economic growth , error correction model , public economics , macroeconomics , econometrics , public finance , finance , statistics , market economy , linguistics , philosophy , mathematics
This research work analyzed the impacts of Federal government expenditure in education on Nigeria economic growth. The study used secondary data from 1980 to 2018 and the information gathered was presented and analyzed through E-view. The study makes use of analytical statistics for the analysis of the data collected. The Ordinary Least Square (OLS), and ADF Test were employed in order for certainty, reliability of the results and to guard against obtaining spurious results. Adaptive model was employed in order to capture the short and long run effect of Federal Government expenditure in education (GEDU) on economic growth and the hypothesis say that, there is no long run impact of Federal government expenditure in education on Nigeria economic growth. However, the findings show that there is positive impact between RGDP and GEDU, and Comparing GEDU of the short run and the long run, it could be seen that the impact of Federal government expenditure in education is greater in the long run with 7.5% than in the short run. However, the challenges observed are instability, and inadequate government expenditure in education. Therefore the study recommends that quality education make labour more productive and the multiplier effect will cause an increase in aggregate output of the economy.