CHAPTER 10 – Composition of Public Expenditure an Economic Performance in Nigeria (1970-2012) by Usenobong E Akpan and Dominic E. Abang

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The role of public expenditure on economic performance has remained a subject of significant interest and debate in the literature. To date, the empirical literature are mixed. While some studies have supported a positive link between public spending and economic growth (e.g Barro, 1991; Easterly and Rebelo, 1993; Canning, 1999; Dernetriades and Mamuneas, 2000; Akpan and Abang, 2013), others have obtained a negative relations [e.g. Alexander, 1990; Folster and Henrekson, 1999; Josaphat, et al. 2000). Yet, for some other studies (e.g. Agell, Ohlsson and Skogmann, 2006) the impact is ambiguous and depends on other factors. Perhaps one major weakness in some of the previous studies include the use of aggregate government expenditure to explain growth performance.

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