Infrastructure and Economic Growth

This article analyzed theoretically and empirically the influence of infrastructure investment on economic growth in Nigeria from 1980–2006. The study employed the use of vector error correction estimate (VECM). The variables were found to be stationary at order 1, and there exists a long-run equilibrium relationship between the dependent and the explanatory variables. However, the two variables for infrastructure show a steadily declining rate on the long run as shown by the result of the variance decomposition and impulse response functions. It is suggested that the government should intensify their efforts in mobilising more resources towards the provision and improvement of basic infrastructure.