Boosting Capital Spending Drives Economic Growth, Cutting Transfers Hinders Progress
The Olonite Theory of Public Finance and Economic Growth/Development (2019) analyzed how government spending affects economic growth. They looked at data from the Central Bank of Nigeria in 2019 and found that investing in economic services boosts the economy, while spending on transfers like subsidies has a negative impact. The study suggests increasing capital spending on economic services and reducing or eliminating non-performing transfers to promote economic growth.