DOES INFRASTRUCTURAL DEVELOPMENT PROMOTES ECONOMIC GROWTH IN NIGERIA?

Abstract

Over 40 years, this research studied the influence of infrastructure development on Nigeria's economic growth (1981-2019). The World Bank's World Development Indicators provided the annual time series. An infrastructure-modeling Cobb-Douglas production function is given. To test for stationarity, longrun connection, causal link, and short and long-run equilibrium, the research utilized the unit root test, Johansen co-integration test, Granger causality test, and Ordinary Least Square (OLS) approaches. The study's findings found that Nigeria's economic development may be attributed to factors including infrastructure, currency, and inflation. Except for the labour force, all of the study's factors were statistically significant in explaining Nigeria's economic development. According to the investigation findings, the independent variables have a 96 per cent correlation with the R2. On the other hand, the author advocated for the government and policymakers to put these principles into action to improve infrastructure. In addition, emphasis should be paid to the construction of high-quality infrastructure.