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Abstract

This study is an empirical investigations on the responsiveness of selected macroeconomic variables to government expenditure in Nigeria. This paper used the Autoregressive Distributed Lag Model form of regression and found that Inflation, Exchange Rate and Economic Growth respond to recurrent expenditure and aggregate government spending while no relationship of significant nature exists with capital expenditure. Obviously, it is expected by way of deliberate policy that government should pattern expenditure to produce more capital goods that would trigger growth at different levels and sectors of the economy.

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