Abstract:The increase on government expenditure over the years may not have translated into meaningful economic development as many Nigerians are still living in poverty. This has led to this study to investigate the effects of government expenditure on per capita income in Nigeria using vector error correction model for its analysis. The study uses secondary data that span from 1986 to 2017. The data are diagnosed with unit root test for stationarity in which per capita income (PCI), population (POP), and government expenditure (GEX) are stationary at second difference while investment (INV) is stationary at first difference. The result of VEC model shows that GEX posits negative relationship in the short-run and 0.85 percent rate of adjustment whenever shock occurs in the economy. The study recommends that government should inject more funds into the economy but ensure all leakages or loopholes are blocked as well as to ensure proper guidelines of policy implementation of fund appropriation so much so that the purposes are achieved. Keywords:Government Expenditure, Per Capita Income, Economic Development, Nigeria. Title:Analysis of the effect of Government Expenditure on Per Capita Income in Nigeria Author:Salam S. Mohammed, Murtala Ibrahim ISSN 2349-7807 International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) Paper Publications
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