Analysis of the macroeconomic effect of the producitivity of social overhead capital (SOC) investment on Nigeria's economic growth, 1980-1998

Abstract

This study examined the quantative macroeconomic impact of Social Overhead Capital (SOC) investment on Nigerias economic growth. Utilizing a time series data spanning the period 1980-1998, two functional forms (linear and double-loglinear models) were fitted to data. The double-loglinear regression equation, which was selected as the lead equation, showed that with the exception of the number of telephones installed, other variables (electricity generation/supply in kilowatt hours, road mileage/surface area and the structural adjustment programme) significantly influenced the growth of Nigerias Gross Domestic Product (GDP). The results inform that investments in Social Overhead Capital very significantly impacted on Nigerias economic growth during the period, 1980-1998 (P<0.01 and 0.15 respectively).


Key Words: Social Overhead Capital (SOC) Investment, Nigerias Economic Growth.

[Global Jnl Agric Sci Vol.1(1) 2002: 63-71]