Infrastructure and Economic Growth Nexus in Nigeria: A Macroeconometric Modelling Approach
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Date
2016-06
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Capital Development in Behavioural Sciences
Abstract
This paper investigated the impact of infrastructure on economic growth in Nigeria A multivariate model of simultaneous equations was deployed. The
paper also utilised three-stage least squares technique to capture the transmission channels through which infrastructure promotes growth. The research covered 40 years (1970 to 2010). The finding shows that infrastructural investment has a significant impact on output of the economy directly through its industrial output and indirectly through the output of other sectors such as manufacturing, oil and other services. The agricultural sector is however not affected by infrastructure. The results also show a bidirectional causal relationship between infrastructure and economic growth. The paper recommended increased investment in infrastructure. Also, the financing options for closing Nigeria’s infrastructure gaps should focus on broadening the sources of finance and a better allocation of public resources. In this wise, the government should intensify the utilization of the public private-partnership (PPP) framework.
Keywords: Infrastructure, Causality, Economic Growth, Economy of Nigeria, Macro econometric Modeling
Description
Keywords
Infrastructure, Causality, Economic Growth, Economy of Nigeria, Macro econometric Modeling
Citation
APA