Implications of Government Expenditure on Rail Transportation and Economic Performance for Security Challenges in Nigeria
The researchers investigated government expenditure on rail transportation and economic performance in Nigeria from 1986 to 2020. This study used annual time-series data and employed the Fully Modified Ordinary Least Squares (FMOLS) estimation techniques to investigate the variables. The findings showed that government spending on rail transport (GSRT) revealed a positive and insignificant effect on Real Gross Domestic Product (RGDP) during the study period. More so, government spending on communication (GSC) and foreign direct investment (FDI) had positive and significant effects on real gross domestic product (RGDP), whereas growth rate of population (GRP) revealed an inverse relationship in the model. The coefficient of inflation rate (INF) showed negative and statistically not significant. Lastly, both coefficient of government spending on education (GEE) and security (SD) showed a positive relationship, but not significant during the study period. It was concluded that economic growth is influenced by dynamics in variables such as GSRT, GSC, GEE, FDI, INF, SD and GRP in Nigeria during the study period. The researchers, therefore, recommended that Nigeria government should encourage Public-Private Sector partnership’s (PPP) investment in rail transport sub-sector and as well find a means to stabilise the magnitude of insecurity in order to provide an enabling environment for both local and foreign investors.