fiscal policy and economic growth in nigeria pdf

Fiscal policy and economic growth in nigeria pdf

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37 Pages, Grade: 3.67

Fiscal and Monetary Policy and Economic Growth in Nigeria. A Comparative Analysis

Introduction

37 Pages, Grade: 3.67

So, All of authors and contributors must check their papers before submission to making assurance of following our anti-plagiarism policies. Macroeconomic policies and economic growth in Nigeria was determined through co-integration and error correction modeling techniques. The time series properties of the variables were investigated by conducting a unit root test using annual series data for the period and the data source was mainly Central Bank of Nigeria Statistical Bulletin. The result of the parsimonious ECM analysis shows that monetary rather than fiscal policy exerts a great positive impact on economic growth in Nigeria. Also, the granger causality results show bidirectional causation between GDP, total government expenditure and broad money supply.

Tax revenue is frequently considered as an alternative form of sustainable financing within a stable and predictable fiscal environment to promote growth and enable governments to finance their social and infrastructural needs. The objective of the study is to examine the effect of tax revenue on economic growth of Nigeria and Ghana. The study used multiple regressions as tools of analysis. The study finds a positive impact of tax revenue on the gross domestic product of Nigeria and Ghana confirming prior studies. The study recommended among others that adequate measure to ensure that revenue generated from the tax is effectively utilized to develop and grow the economy.

Metrics details. The impacts of public expenditures on economic growth have been revisited in this paper with respect to capital expenditure, recurrent expenditure and the government fiscal expansion in line with support for the budgetary allocations to various sectors in the context of the Nigerian economy. Empirical findings support the existence of a level relationship between public spending indicators and economic growth in Nigeria. Incisively, recurrent expenditures of government were found to be significantly impacting on economic growth in a negative way while the positive impacts of public capital expenditures were not significant to economic growth over the period of the study. Further results from the Granger Causality Test reveal that fiscal expansion of the government that is hinged on debt financing is strongly granger causing public expenditures and domestic investment with the latter also Granger causing real growth in the economy.

Fiscal and Monetary Policy and Economic Growth in Nigeria. A Comparative Analysis

The study examined the impact of government fiscal and monetary policies on economic growth within the period of 33 years Time series data were derived from the Central Bank of Nigeria statistical bulletin, while the method of analysis was the Johansen Cointegration test, vector error correction method and the Wald test of coefficient. The result of the findings showed that there is a significant relationship between explanatory variables government expenditure, interest rate and money supply taken jointly and the dependent variable real gross domestic product in the long run. The coefficient of error correction term is This proves that there is a relationship between the dependent variable- real gross domestic product and the independent variables - government expenditure, money supply and interest rate in the long run.

The Nigerian government over the years embarked on diverse macroeconomic policy options to tinker the economy on the path of growth and development. Amongst the policy options readily employed is that of fiscal policy. Despite the lofty place of fiscal policy in the management of the Nigerian economy, the economy is yet to come on the path of sound growth and development. The intent of fiscal management is essentially to stimulate economic and social development by pursuing a policy stance that ensures a sense of balance between taxation, expenditure and borrowing that is consistent with sustainable growth. However, the extent to which fiscal management engenders private investment continues to attract theoretical and empirical debate especially in developing countries like Nigeria.

Google- Scholar Metrics. Toggle navigation. Time series data from to relevant to the study were collected from the Central Bank of Nigeria statistical bulletin, Volume 22 and the National Bureau of Statistics. The ordinary least square method of multivariate regression was utilized in analyzing the log-linearized Model. The Augmented Dickey-Fuller unit root test was employed to establish the stationarity of the variables while the General-to-Specific approach to Autoregressive Distributed Lag ARDL model was used for testing for the existence of long-run and short-run equilibrium conditions. The findings were that, there is evidence of long run equilibrium relationship between fiscal policy and economic growth in Nigeria during the period studied.


PDF | This article aims at determining the impact of various components of fiscal policy on the Nigerian economy. We simply used descriptive.


Introduction

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3 comments

  • Eberardo N. 22.04.2021 at 17:43

    Partes de un motor electrico de corriente directa pdf partes de un motor electrico de corriente directa pdf

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  • Goamontnagu 24.04.2021 at 01:05

    This study examines the asymmetric effect of government spending on economic growth in Nigeria over the period —

    Reply
  • Apolline L. 29.04.2021 at 20:25

    Fiscal policy fosters economic growth and development through a number of different channels. These include the macroeconomic (influence on budget deficit​.

    Reply

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