ECONOMIC GROWTH IN DEVELOPING NATIONS: IMPACT ANALYSIS OF 1981-2023 NIGERIA GOVERNMENT RECURRENT EXPENDITURE

The study examined economic growth of developing nations: impact analysis of government recurrent expenditure from 1981 to 2023. The autoregressive distributed lag (ARDL) model technique was employed. The result demonstrated the restoration of 96% of the previous period’s disequilibrium to equilibrium in the current period. It is also found out that economic services of government recurrent expenditure on agriculture (EGRXA) has a negative impact on Nigeria’s economic growth (NEGR) in both the short run and the long run. Economic services of government recurrent expenditure on road construction (EGRXR) and economic services of government recurrent expenditure on other economic services (EGRXO) have a negative insignificant impact on (NEGR) in both the short and long run, respectively. However, economic services of government recurrent expenditure on communication (EGRXT) has a positive significant impact on NEGR both in the short and long run, respectively, while Nigeria inflation rate (NIFR) has a negative, insignificant impact on NEGR both in the short run and long run, respectively. The study found that government spending has a big effect on Nigeria’s economic growth.It also found that EGRXT is the most productive and effective part of government recurrent economic services spending, and it has a big and positive effect on NEGR in both the short and long term. Through the budget and allocation office, the study suggested that the government intentionally set aside more money for ongoing costs of economic services in the agricultural sector. This would help boost production in that sector. Every resource allocated to other sectors should be monitored and accounted for, and government spending on EGRXT should be sustained and increased in order to enhance productivity.