EFFECT OF ADMINISTRATIVE CAPITAL EXPENDITURE ON ECONOMIC DEVELOPMENT: AN EMERGING NATION OUTLOOK

The study embraces the effect of administrative capital outflow on recurrent outflow on economic development in Nigeria, with the fundamental intent to examine the effect, causes, and affiliation between government overheads and economic growth and development in Nigeria. The study adopted annual time series data from 19992016. The Classical Regression Model, Augmented Dickey-Fuller test along with an array of a diagnostic test where employed. The Johansen test for co-integration was equally employed with two co-integrating factors. Empirical proof bared a long-run affiliation flanked by government outflow and growth in Nigeria. The Results documented the manifestation of a significant affiliation flanked by real gross domestic product, total recurrent expenditure and community services, with a nonsignificant affiliation flanked by GDP and economic services. In relation to the findings, surrounded by the sanctions made, are that government should and must increase capital overhead and decrease recurrent overhead to propel development. Nevertheless, for government to realize the intent of infrastructural development the conglomerate between the private sectors and the government is sine qua non.