PUBLIC EXPENDITURE AND INCLUSIVE GROWTH IN NIGERIA
M.A. Yaru*1, H.I. Mobolaji1, A. A. Kilishi1 & A.T. Yakubu1
1Department of Economics, University of Ilorin, Ilorin, Nigeria
Nigeria has recorded tremendous and steady rise in public spending and economic growth over the years. However, the rates of poverty and unemployment are on the increase. This raised public concern on the inclusiveness of Nigeria’s economic growth. This paper therefore examined: (i) the inclusiveness of Nigeria’s economic growth; and (ii) the impact of public expenditure on inclusive growth in Nigeria. The paper used secondary data for the period between 1960 and 2012. Principal Component Analysis was used to compute the inclusive growth index, while time series regression analysis was used for the second objective. The results showed that only the impact of state governments’ expenditure was significant at 10 percent. However, expansionary fiscal policy could undermine inclusive growth if it triggers to inflation. Also, the results suggested that excessive trade openness could inhibit the inclusiveness of the growth process.
Key Words: Public Expenditure, Inclusive Growth, Nigeria