NEXUS OF PUBLIC EXPENDITURE AND EMPLOYMENT RATE IN NIGERIA AND GHANA

This study determined the effect of government expenditure on unemployment rate in Nigeria and Ghana. The study used government expenditure on education and health care as the independent variable. Data were sourced from Statistical Bulletins and annual budget of the two countries. The multiple regression analysis was employed for the test of hypotheses. The study found that government expenditure on education has negative and no significant effect on unemployment rate in Nigeria, but found positive significant in Ghana. Another finding was that the government expenditure on health has significant effect on unemployment rate in both Nigeria and Ghana. Based on the results, the study recommended among others that government of Nigeria needs to readdress resources to productive sectors that directly address unemployment rate, such as infrastructure education and execute reforms to streamline government processes and reduce administrative overhead.