Role of public administration in stimulating economic growth through infrastructure development in Nigeria
Keywords:
Economic Growth, Government Effectiveness, Infrastructure Development, Public Administration, Public Spending.Abstract
This study examines the role of public administration in stimulating economic growth through infrastructure development in Nigeria, focusing on government capital expenditure, infrastructure investment, and governance effectiveness. It employs an ex-post facto research design supported by descriptive and econometric approaches, using quarterly data from 1996Q1 to 2024Q4 sourced from the World Bank’s World Governance Indicators. The Autoregressive Distributed Lag (ARDL) bounds testing technique was applied to examine both short-run and long-run relationships among the variables. The results reveal strong positive relationships between real gross domestic product, government capital expenditure, and infrastructure investment, while governance effectiveness shows weak associations with the other variables. The unit root tests confirm a mixed order of integration, and the bounds test establishes a long-run cointegration relationship among the variables. Long-run estimates show that government capital expenditure and infrastructure investment significantly enhance economic growth, with infrastructure having a stronger effect, while governance effectiveness has a negative long-run impact, reflecting institutional inefficiencies. In the short run, all variables positively influence economic growth, with infrastructure again exerting the strongest effect, and the error correction mechanism indicates a relatively fast adjustment toward equilibrium. Diagnostic and stability tests confirm that the model is robust and well-specified. The study concludes that public administration drives economic growth mainly through capital and infrastructure spending, while weak governance limits long-term performance. It recommends improved efficiency in public expenditure, sustained infrastructure investment, and stronger institutional reforms to enhance governance effectiveness and ensure sustainable economic growth in Nigeria.
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