An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy

Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 4 Error correction estimates

Variables	Coefficients	t-statistics	P-values
C	0.4096	7.1395	0.0000
\(\Delta\)(RGDP(− 1))	0.4071	3.7658	0.0011
\(\Delta\)(RECEXP(− 1))	0.0503	3.5436	0.0018
\(\Delta\)(DEBT)	− 0.0105	− 0.5948	0.5580
\(\Delta\)(DEBT(− 1))	0.1049	4.5514	0.0002
\(\Delta\)(PRIVEXP)	0.0969	3.6453	0.0014
ECM(− 1)	− 0.3382	− 6.9568	0.0000
R²	0.80
Adjusted R²	0.75
F-statistics	15.61
DW-stat	1.90
P-value	0.0000

The superscripts ***, ** and * represent the rejection at 1%, 5% and 10% levels of significance, respectively. The symbol \(\Delta\) denotes a difference operator. RGDP means, real gross domestic product; RECEXP is total government recurrent expenditures as a percent of GDP; CAPEXP represents, total government capital expenditures as a percent of GDP; DEBT is total public debt as a percent of the GDP; PRIEXP, denotes private consumption expenditure; INVEST, gross domestic investment as measured by annual growth of gross capital formation. ECM means error correction term that depicts the speed of adjustment term to the equilibrium path