Jornal de Negócios e Assuntos Financeiros

Granger Causality between Growth in the Education Sector and Social Economic Services in Nigeria

Abstract

Oluwapelumi A* and Olaride OB

The relationship between two variables has been mush studied using the concepts of Granger causality. In this study, Nigeria economic data from 1981 to 2015 is used to investigate the causal relationship between education sector growth and socio-economic services (education, health, road & construction and transport & communication), employing unit root test, Johansen co-integration and Granger causality approaches. The result of the study showed that there is long run Granger causality between the education growth and the recurrent expenditure on socio-economic services.