FISCAL POLICY AND ECONOMIC GROWTH IN NIGERIA (1980-2017)

FISCAL POLICY AND ECONOMIC GROWTH IN NIGERIA (1980-2017)

Author by Mrs. Iyabo Okedina

Journal/Publisher: Rhema University Journal Of Management And Social Sciences

Volume/Edition: 7

Language: English

Pages: 162 - 173

Abstract

This study sought to examine the relationship between fiscal policy and economic growth in Nigeria. The study employed the annual time series data covering the period of 1980-2017 sourced from the CBN Statistical Bulletins, World Bank Indicators and the National Bureau of Statistic. The results using the Phillip-Perron test revealed that all the variables are integrated of order 1. The Non-linear Autoregressive Distributed Lag (NARDL) estimation co-integration framework was employed to investigate the expansionary and/or contractionary effect of fiscal policy on economic growth. The findings concluded that there is a long-run relationship between fiscal policy and economic growth in Nigeria and that an expansionary fiscal policy is growth promoting while a contractionary fiscal policy is growth diminishing. The study recommends that an expansionary fiscal policy should be pursued by the government to promote growth.


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