The impact of government expenditure on gross domestic private investment in Nigeria (1975-2012).

The study investigated the long-run relationship between government expenditure and gross domestic private investment in Nigeria during the period 1975 to 2012. Therefore, the impacts of five components of government expenditure on gross domestic private investment were examined using Johansen co-integration and error-correction technique. The empirical results showed that in the long-run government expenditure on administration and agriculture have positive effects on gross domestic private investment, while government expenditure on human capital development, infrastructure, and public debt servicing have negative effects on gross domestic private investment. This study policy recommendation suggested government to increase its expenditure on key areas such as, education, health, agriculture, and infrastructure, in order to encourage and stimulate investment in the private sector. This is because domestic private investment promotes economic growth and development. --Leaf ii.