African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4137

Full Length Research Paper

An assessment of nexus between infrastructural development and Nigerian economic growth

Peter Siyan
  • Peter Siyan
  • Department of Economics, University of Abuja, Nigeria.
  • Google Scholar
Adewale E. Adegoriola
  • Adewale E. Adegoriola
  • Department of Economics, University of Abuja, Nigeria.
  • Google Scholar


  •  Received: 13 May 2016
  •  Accepted: 16 February 2017
  •  Published: 28 September 2017

Abstract

This study investigates the nexus between infrastructural development and Nigerian economic growth using data from 1981 to 2014. The data was tested for stationarity followed by co-integration, and Vector Error Correction Model (VECM) was employed for the analysis. From the results, there is long run relationship between infrastructure development and Nigerian economic growth. VECM have the expected negative sign, and is between the accepted region of less than unity. It also shows a low speed adjustment towards equilibrium. Hence specifically, infrastructural development on road and communication show a positive relationship with the Nigerian economic growth for the period under review, while private investment, degree of openness and education produced negative relationship with economic growth. It was therefore recommended that, the government should beef up their commitment on improving infrastructure, develop the manufacturing sector to properly harness the advantages of openness of the economy, improve and monitor budgetary allocation to education to increase human capital development that is capable of utilizing available infrastructure and resources for the attainment of economic growth, and encourage private sector with series of incentives to increase their participation in investment activities which will lead to economic growth.

Key words: Infrastructure, economic growth, vector error correction model.