This study have used the works of Barro(1990), Bakare(2011), Dissou and Yakautsava (2011) to establish the relationship between government spending, corruption and output growth in Nigeria. It employed aggregate data from 1980 to 2011. Using Johansen Maximum Likelihood procedure and error correction mechanism, the result show that the estimates of money supply, capital formation, openness to trade and innovation system positively influenced output growth while that of unemployment and domestic debt affected output negatively. Public investment as percentage of GDP and corruption variable inversely influenced output growth. The paper submitted that corruption tilts away public spending away from growth enhancing projects towards low and less productive ones.

This study have used the works of Barro(1990), Bakare(2011), Dissou and Yakautsava (2011) to establish the relationship between government spending, corruption and output growth in Nigeria. It employed aggregate data from 1980 to 2011. Using Johansen Maximum Likelihood procedure and error correct...