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EFFECT OF ADMINISTRATIVE CAPITAL EXPENDITURE ON ECONOMIC DEVELOPMENT: AN EMERGING NATION OUTLOOK

Abstract

The study centered and embraces the effect of administrative capital outflow on recurrent outflow on economic development in Nigeria, with the fundamental intent to examine the effect, causes, and affiliation between government overheads on economic growth in Nigeria. Annual data from 1999-2016 is adopted. The Classical Regression Model, Augmented Dickey-Fuller test with an array of a diagnostic test is employ. The Johansen test for co-integration was equally employed with two co-integrating factors. Empirical proof bared a long-run affiliation flanked by government outflow and growth in Nigeria. The Results also document the manifestation of a significant affiliation flanked by real gross domestic product, total recurrent expenditure and community services, with a non-significant affiliation flanked by GDP and economic services. In relation to the findings, surrounded by the sanctions made are that government should and must increase capital overhead and decrease recurrent overhead to propel development. Nevertheless, for government to realize the intent of infrastructural development conglomerate between the private sectors and the government is sine qua non.

SAMUEL UE, UDOH BE, PRINCE AI, JOHN IU, NNEKA IR

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