Abstract This study investigates the crowding out effect of government expenditure on private investment in Nigeria using annual data spanning from 1981-2015. The research is shaped by the high level of competition that investors are exposed to in the economy. Competitiveness is also supported by government plans to reduce investment burden by increasing expenditure in all strategic sectors of the economy. The present paper adds to the existing literature by investigating the effect of disaggregated government expenditure on private investment in Nigeria. The estimation techniques of the study include pre-and post-estimation, including descriptive statistics, correlation matrix, a unit root test and econometric estimation using the Auto Regressive Distributed Lag (ARDL) method. Government capital expenditures are estimated marginally, while recurrent expenditures are estimated in terms of elasticity, as the variables (recurrent expenditures) show a strict long tail to the right. It was observed in general that the effect of government expenditure on private investment depends on the components of the expenditure. Some were found to crowd out private investment while some crowd in private investment. This implies that not all government expenditure is channeled in such a way that it attracts private investment in the economy. It is therefore recommended that the policymakers should take into consideration the existence of private investors in expenditure plans.

中文翻译：

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政府支出对私人投资的挤出效应研究

摘要本研究使用1981-2015年的年度数据调查了尼日利亚政府支出对私人投资的挤出效应。这项研究的基础是投资者在经济中所面临的高度竞争。政府计划通过增加经济所有战略领域的支出来减轻投资负担，从而提高了竞争力。本文通过调查分类的政府支出对尼日利亚私人投资的影响来补充现有文献。该研究的估算技术包括前后估算，包括描述性统计量，相关矩阵，单位根检验和使用自动回归滞后（ARDL）方法的计量经济学估算。政府资本支出仅略有估算，而经常性支出是根据弹性来估算的，因为变量（经常性支出）在右边显示出严格的长尾巴。一般认为，政府支出对私人投资的影响取决于支出的组成部分。发现有些挤占私人投资，而有些挤占私人投资。这意味着并非所有政府支出都以吸引私人投资经济的方式进行分配。因此，建议决策者应在支出计划中考虑私人投资者的存在。一般认为，政府支出对私人投资的影响取决于支出的组成部分。发现有些挤占私人投资，而有些挤占私人投资。这意味着并非所有政府支出都以吸引私人投资经济的方式进行分配。因此，建议决策者应在支出计划中考虑私人投资者的存在。一般认为，政府支出对私人投资的影响取决于支出的组成部分。发现有些挤占私人投资，而有些挤占私人投资。这意味着并非所有政府支出都以吸引私人投资经济的方式进行分配。因此，建议决策者应在支出计划中考虑私人投资者的存在。