Impact of Government Educational Spending on Total Productivity and Economic Growth in Nigeria

Abstract

Education is an essential tool for human development since it increases a country’s potential for economic growth and productivity. For this reason, policy officials in both advanced and growing nations, as well as education experts, have made education a top priority. Despite the existence of a theoretical relationship between growth and education investment, there is no empirical agreement regarding their relationship. Therefore, the purpose of this study was to ascertain how education spending affected Nigeria’s overall productivity and economic growth between 1981 and 2021. Penn World Table (9.5) and the Central Bank of Nigeria Statistical Bulletin (2021) were the secondary sources of data used in this study. Multiple regression analysis was used in the study to examine how government education investment affects overall productivity and economic growth. The study’s conclusions demonstrate, among other things, the favorable and substantial effects of public education spending on productivity and economic growth. It also demonstrates that health spending has a positive and considerable impact on productivity; yet, when it comes to its effect on economic growth, the impact is positive but negligible. The report suggests that in order to boost overall productivity and economic growth, the government should invest more money on education