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 1 Unit root test

(Level)	RGDP	RECEXP	CAPEXP	DEBT	PRIEXP	INVEST
G_E (ADF)	0.7938	0.3268	0.5196	0.2849	0.7673	0.2114
C_E (ADF)	0.9096	0.4686	0.8847	0.3998	0.1381	0.0208**
N_E (ADF)	0.9996	0.2510	0.2807	0.4998	1.0000	0.0060***
G_E (PP)	0.3562	0.3276	0.5196	0.4138	0.6993	0.0016***
C_E (PP)	0.9911	0.5014	0.7210	0.5110	0.1381	0.0004***
N_E (PP)	1.0000	0.2101	0.1969	0.5915	1.0000	0.0000***

(1st Diff)	\(\Delta\) RGDP	\(\Delta\) DEBT	\(\Delta\) PRIEXP
G_E (ADF)	0.0196**	0.0430**	0.0007***
C_E (ADF)	0.0018***	0.0083***	0.0003***
N_E (ADF)	0.0250**	0.0004***	0.0037***
G_E (PP)	0.0192**	0.0616*	0.0007***
C_E (PP)	0.0018***	0.0121**	0.0003***
N_E (PP)	0.0250**	0.0007***	0.0042***

The superscripts ***, ** and * represent the rejection level at 1%, 5% and 10% levels of significance, respectively. \(\Delta\) denotes first difference operator. Also, 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. Also, G_E represents the unit root test model for a random walk variable with both drift and trend parameters; C_E is the model with a drift parameter only while N_E is a very restricted model to conduct unit root test without a drift and trend. The t-statistics values of the ADF and PP tests were reported