An Assessment of Government Sectoral Spending on Productivity in Nigeria: Error Correction Analysis

This study sets out to examine the role of government sectoral expenditure on productivity in Nigeria. The research covered the period between 1982 and 2015. Data on government sectoral expenditure and productivity were sourced from secondary sources and analysed using Dickey-Fuller Unit root test, Johansen cointegration test and Vector Error Correction Test (VECM) findings revealed stationarity of the variables as well as the existence of long-run relationships with economic growth index. Findings also indicate that Administration and transfer expenditure exert positive and significant influence on growth index in the long-run. It is therefore recommended that public sector financial management should be strengthened to ensure transparency in expenditure and resource allocation.