SUSTAINABLE DEVELOPMENT DIMENSIONS AND GOVERNMENT EXPENDITURE IN NIGERIA: AN ARDL BOUND TEST
Abstract
This study examined the role of government expenditure on the economic, social and environmental dimensions of sustainable development in Nigeria. The study analysed quarterly time series data using the ARDL bound test technique. The result indicated that government expenditure does not influence social and economic sustainability in the long-run, however, it exhibited a long-run equilibrium association with environmental sustainability. In specific terms, the short-run estimates revealed that government expenditure accelerate social, economic and environmental targets of the sustainable development goals. Within the same discussion, the equilibrium long-run relationship between government expenditure, government revenue, and public debt, agricultural and industrial output supports theoretical argument proposed in Wagner’s hypothesis. In light of the foregoing, the study concluded that government expenditure would play a significant role in the attainment of sustainable development goals in Nigeria, and as such, it is recommended that the public sector should continue to increase her aggregate expenditure levels, contract moderate debts and improve the agricultural and industrial sector if sustainability will be a reality in the country.
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