CROWDING IN OR CROWDING OUT? GOVERNMENT SPENDING AND PRIVATE INVESTMENT: THE CASE OF NIGERIA

Authors

  • Muhammad Zayyanu Bello Usmanu Danfodiyo University Sokoto
  • Aminu Bello Nagwari Department of General Studies, Sokoto State Polytechnic
  • Mubarak Abdullahi Saulawa Department of general studies,Yusufu Bala Usman college of legal and general studies, Daura

DOI:

https://doi.org/10.19044/esj.2012.v8n28p%25p

Abstract

This paper uses the multiple regression analyses to investigate the extent to which government spending crowd in or crowd out private investment in Nigeria. The analysis is conducted using 34 years of annual data for Nigeria. The paper lays emphasis on disaggregating the capital and recurrent spending of the federal government and examining their separate effect on private investment. The analysis suggests that effective macroeconomic management be ensued in order to cushion the adverse effect of rising inflation on private investment.

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Published

2012-12-28

How to Cite

Bello, M. Z., Nagwari, A. B., & Saulawa, M. A. (2012). CROWDING IN OR CROWDING OUT? GOVERNMENT SPENDING AND PRIVATE INVESTMENT: THE CASE OF NIGERIA. European Scientific Journal, ESJ, 8(28). https://doi.org/10.19044/esj.2012.v8n28p%p