Infrastructural Development and Economic Growth in Nigeria

Abstract

This study examines the relationships between infrastructural development and economic growth in Nigeria using annual time series data spanning from 1981 - 2017.  Research variables like Gross Domestic Product (GDP), Agriculture and Natural Resources (ANR), Roads Maintenance and Construction (RMC), Energy Supply (ENS) and Transport and Communication System (TCS) were used for the study.  Philips-Perron unit root test (PP), Vector Autoregressive (VAR) estimation technique and Wald Bounds test were employed.  The results of the study confirmed that there is positive correlation between infrastructural development and economic growth in the short-run in Nigeria.  Based on the research findings, the study recommends that fiscal macroeconomic instruments should be employed to increase government expenditure on infrastructural development in order to achieve the economic developmental goal of the country.

Keywords – Infrastructural Development, Economic Growth, Vector Autoregressive, Wald Bounds, Philips-Perron.

DOI: 10.7176/JESD/10-24-07

Publication date: December 31^st 2019