Examine the Impact of Government Expenditure on Standard of Living in Nigeria (1981 – 2018)

Abstract

Abstract This study investigated the impact of government expenditure on standard of living in Nigeria from 1981–2018 by using a time series data from 1981 to 2018. Government expenditure on three sectors of the economy were used. These sectors include; the education sector, agricultural sector and the health sector. The result shows that government education expenditure and government agricultural expenditure are statistically significant at 10% level of significance while government health expenditure is statistically significant at 5% level of significance. This study concluded that government expenditure on education and health are crucial determinants of standard of living in Nigeria. More money needs to be allotted for the health and education sectors. Together, the idea of government spending and endogenous growth theory propose that public spending on things like health care, education, agricultural advances, and other technology promotes economic growth and reduces poverty in all economies.