The Infrastructure–Growth Nexus in Nigeria: A Reassessment

Abstract

This article re-examines the link between infrastructure development and output growth in Nigeria for policy formulation and implementation. The article employed the Granger causality test based on the time series vector error correction model (VECM) to reinvestigate the nexus between infrastructure investment and economic growth in Nigeria, using quarterly data from 1997:Q1 to 2017:Q4. This study, therefore, interrogates and accepts the infrastructure–growth hypothesis that increased financial infrastructure and infrastructure stock stimulates long-run real economy expansion in the Nigerian context.

JEL Classification: H54, E23, C23

Keywords

Infrastructure public–private partnership economic growth gross domestic product vector error correction model

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