ROLE OF GOVERNMENT EXPENDITURE IN PROMOTING SUSTAINABLE GROWTH IN THE MANUFACTURING SECTOR IN NIGERIA

Abstract

This study evaluated the role of Government expenditure in promoting sustainable growth in man-ufacturing sector in Nigeria. The study analyzed the secondary data collected using the ARDL model of analysis. Study findings revealed that government recurrent expenditure is negatively re-lated to manufacturing output in Nigeria within the study period. Government Capital Expenditure was found to be statistically significant to manufacturing output in Nigeria within the period under review. Based on findings the study recommended that Government capital expenditure be directed to infrastructural development such as electricity, road construction, that have direct bearing on manufacturing sector output. Finally, the study recommends that Nigerian government should re-view its recurrent expenditure and identify areas where costs can be reduced without compromis-ing essential services.