DETERMINANTS OF GOVERNMENT SIZE IN NIGERIA: AN EMPIRICAL REVIEW

Abstract

The study examined the variables influencing the government size in Nigeria. A time series data concerning the 
period from 1981 to 2020 was used. The objective of the study was achieved through the use of the non-linear 
ARDL, ARDL, Hatemi J causality test and the Pesaran Shin and Smith (2001) and BDS tests. The result revealed 
that among the variables considered to investigate the major factor that determine government size, Gross domestic 
product, trade openness, inflation and oil revenue are major determinant of government size in Nigeria during the 
period of investigation. Hence, the study recommended that proper monitoring of oil revenue is important so as to 
ensure its judicious use in the economy and Government should also ensure price stability so as to allow free flow of 
investment to the country.