Relationship between government expenditure on security and exportation in Nigeria

Abstract

This research work examined the impact of Government expenditure on security and export in Nigeria for the period 1986-2020. In a bid to actualize the main objective of the study, data were collected from secondary sources such as 2020 editions of CBN statistical Bulletin and National Bureau of statistics. The model of this study was built based on Keynesian National income model and data were analyzed using the Vector Autoregresssive Technique. The result of the study showed that one lagged period of export (ln(EPT(-1)) has a direct and significant effect on export performance in Nigeria. The result further established that two lagged period of government expenditure on emergency care (ln(GSE(-1)) has no significant, but positive effect on export performance. The result proved that one lagged period of government expenditure on Amnesty (ln(GSA(-1)) has no significant, but positive effect on export performance. The finding also show that one lagged period of government expenditure on Ammunitions (ln(GSM(-1)) is positive and statistically significant on export performance. The study recommends that governments should introduce policies that will promote exports through effective spending on security and infrastructural development; while firms should be encouraged to spend more on fixed capital which include properties, plants, and equipment.