An Appraisal of Some Factors Influencing Economic Growth in Nigeria

Abstract

This study examines the impact of some determinants of economic growth on the Gross Domestic Products (GDP). These determinates include interest rate, inflation rate, oil revenue, Federal Government Expenditure, money supply, foreign private investment and foreign exchange rate. The study employed unit root test, co-integration test and multiple regression analysis. The result showed that there is a longrun relationship between GDP and all the determinants aforementioned. The study also establishes that money supply, oil revenue, Federal Government Expenditure and foreign private investment had significant impact on economic growth while inflation rate, interest rate and foreign exchange rates  adopted so far  by the government does not have significant impact on economic growth ( GDP). The study recommended that the productive capacity should be improved by Government through direct investment in the real sectors of the economy and Government expenditure should be expanded on productive ventures since its impact on economic growth is positive

Keywords: Economic growth, Government expenditure, Output and Investment.