ANALYSIS OF THE EFFECTS OF RECURRENT EXPENDITURE ON THE ECONOMIC GROWTH OF NIGERIA. (2000-2019)
Abstract
This study examined the analysis of the effects of recurrent expenditure on the economic growth of Nigeria. Secondary time series panel data was collected for the period 2000 to 2019 from the Statistical Bulletin of the Central Bank of Nigeria (CBN). The study employed Ordinary Least Squares (OLS) technique based on the E-views 8 version for the analysis of data, where Gross Domestic Product (GDP), the dependent variable and proxy for recurrent expenditure (REC), was regressed as a function of Inflation rate (IFR), Interest rate (INTR) and exchange rate (EXCH) the independent variables. The results of the analysis showed that both Inflation rate and Interest rate have no significant effect on Gross Domestic Product on the economic growth in Nigeria also gross domestic product, inflation rate and exchange rate has positive on recurrent expenditure. Based on the findings, the study recommended that government should put in place measure to control inflation and also formulate and implement financial policies that enhance investment-friendly rate of interest and take into consideration those other factors which negatively affect investment in the country in order to maintain sustainable economic growth.
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