Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis)

Paul Ndubuisi

doi:doi:10.11648/j.jbed.20170204.13

| Peer-Reviewed

Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis)

Paul Ndubuisi

Published in Journal of Business and Economic Development (Volume 2, Issue 4)

Received: 9 May 2017 Accepted: 20 May 2017 Published: 20 July 2017

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

This study investigates empirically the fiscal policy impact on the economic growth index in Nigeria for the period 1985-2015. Data for the study were collected from secondary sources. The expost facto research design was adopted for the study. The data were analysed using OLS multiple regression, unit root test, co-integration and Error Correction mechanism (ECM). The results revealed that the variables were all stationary at level and co-integrated of the same order in the long-run. The result also showed that fiscal policy significantly influenced the rate of growth in Nigeria economy. It was therefore recommended that government should ensure transparency in budget implementation and fiscal discipline to put Nigeria on the path of sustainable growth.

Published in	Journal of Business and Economic Development (Volume 2, Issue 4)
DOI	10.11648/j.jbed.20170204.13
Page(s)	215-226
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Fiscal Policy, Economic Growth, Capital Expenditure, Recurrent Expenditure, Domestic Debt

References

[1]	Sanni (2012). Public expenditure and economic growth. African journal of economic policy 1 (1). Nigeria, university of Ibadan press.
[2]	Anyanwu, J. C. (1993). Monetary economics theory: policy and institutions. Onitsha hybrid publishers ltd.
[3]	Udabah. S. I (1999). An introduction to Nigerian public finance, Nigeria: linco press.
[4]	Kuznets S. (1973). Modern economic growth: findings and reflections. The American economic review, 63, 3.
[5]	Diamond, J. (1990). Fiscal indicators for economic growth, an illusory search. IMF working paper No 104.
[6]	Longe, J, B. (1984). The Growth and Structure of Federal Government Expenditure in Nigeria. The Journal of Economics and Social Studies, 26 (1).
[7]	Abdullah, H. A. (2000). The relationship between fiscal policy and Economic Growth in Saudi Arabia. Journal of Administrative Science. 12 (2).
[8]	Al-Yousif, Y. (2000). Does government expenditure inhibit or promote economic growth: some empirical evidence from Saudi Arabia. Indian economic journal. 48 (2).
[9]	Ranjan, K. D. & Sharma, C. (2008). Government expenditure and economic Growth, evidence from India. The lafia University journal of public finance. 6 (3).
[10]	Cooray, A. (2009). Government expenditure, governance and economic growth, comparative economic studies. 51 (3).
[11]	Ram, R. (1986). Government size and economic growth: a new framework and some evidence from cross-section and times-series data, American economic review. 76.
[12]	Landau, D. (1983), Government expenditure and economic growth, across-country study. Southern economic journal. 12 (1).
[13]	Easterly. (1992). fiscal policy and economic growth: an empirical investigation, Journal of monetary economics. 23 (3).
[14]	Ezirim, B. C & Muoghalu M. I (2006). Explaining the size of public expenditure in less developed countries. Theory and empirical evidence from Nigeria. ABSU journal of management sciences, 2, (2), 134 -154.
[15]	Offurum, O. (2005). Public expenditure and economic growth, African journal of economic policy. Ibadan (Nigeria), university of Ibadan press.
[16]	Agiobenebo, T. J. (2003). Public sector economics: principles, theories, issues and applications. Port Harcourt: Lima Computers.
[17]	Gbosi, A. N. (2002). Contemporary macroeconomic problems and stabilization policies. Port Harcourt, automatic ventures.
[18]	Okowa. W. J. (1997). Oil, Systemic Corruption, Abdulistic Capitalism and Nigerian Development: A political economy Port Harcourt: paragraphics publishers.
[19]	Aghevli, B. B. and M. S. Khan (1970). Inflationary and economic growth Journal of political Economy, 23 (2).
[20]	Wagner, A. f (1911). Staat In national ökonomischer hinsicht, in handwörterbuch der staats wissenchaften, third edition book VII. Jena: lexis 743-745.
[21]	Khosravi. A & Karimi M. S. (2010). To investigate the relationship between monetary, fiscal policy and economic growth in Iran: autoregressive distributed lag approach to cointegration. American journal of applied sciences, 7, 3.
[22]	Tchokote, J. (2001). Macroeconomics of fiscal deficits in Cameroon, being a Ph.D thesis proposal presented to the department of economics, university of Ibadan Nigeria.
[23]	Friedman M. & Meiselman. D. (1963). The relative stability of monetary velocity and the investment multiplier in the United States, 1897 - 1958, in commission on money and credit: stabilization policies. Englewood Cliffs, NJ: prentice Hall 165-268.
[24]	Bogunjoko J. O (1997). Monetary dimensions of the Nigerian economic crisis, empirical evidence from a cointegration paradigm. The Nigerian journal of economic and social studies, 39 (2): 140-147.
[25]	Babalola S. J & Aminu U. (2011). Fiscal policy and economic growth relationship in Nigeria, international journal of management and social sciences.
[26]	Philips, A. O. (1997). Fiscal relations among the various tiers of government in Nigeria, journal of monetary economics. 1 (152).
[27]	Loto, M. A (2011). Impact of government sectoral expenditure on economic growth, Journal of economic and international finance, 3 (11), 646-65.
[28]	Egwaike, F. O (1998). Budget deficit and macroeconomic management in Nigeria, in post- structural adjustment programme. The Nigerian journal of economic and social studies, 38 (1), 3.
[29]	Akpan, N. I. (2005). Expenditure, government and economic growth in Nigeria: a disaggregated approach, CBN economic and financial review.
[30]	Koman, J. & Brahmasrene, T. (2007). The relationship between government expenditures and economic growth in Thailand, journal of economics and economic education research 23 (2).
[31]	Abu-Bader, S. and Abu-Qarn A. S. (2003). Government expenditures, military spending and economic growth: causality evidence from Egypt, Israel, and Syria. Journal of Policy Modeling. 13 (4).
[32]	Daniel S. and Samuel A. (2012). Democracy, government spending and economic growth: a case of Ghana, 1960 - 2008. The journal of applied economic research.
[33]	Ubesie, M. C (2016). Effect of fiscal policy on economic growth in Nigeria journal of finance and accounting, 4, 3.
[34]	Gujarati, D. (2004). Basic Econometrics. United States Military Academy, West Point.
[35]	Johansen, S. (1992). Cointegration in partial systems and the efficiency of single-equation analysis. Journal of econometrics, 52 (3), 389-402.
[36]	Brooks, C. (2014). Introductory econometrics for finance. Cambridge university press.
[37]	Mukhtar T, M. Z., & Ahmed, M. (2007). An empirical investigation for twin deficits hypothesis in Pakistan, journal of economic corporation, 28 (4), 63 - 80.
[38]	Central Bank of Nigeria (CBN) Bulletin 2015.
[39]	Ogwuru, H. O. R and Ewubare (2009). Exchange rate dynamics and current account balance in Nigeria. Journal of finance, banking and investment, Abia State University Uturu, vol 3, no 1, 74-85.

Cite This Article

Plain Text BibTeX RIS

APA Style

Paul Ndubuisi. (2017). Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis). Journal of Business and Economic Development, 2(4), 215-226. https://doi.org/10.11648/j.jbed.20170204.13

Copy | Download

ACS Style

Paul Ndubuisi. Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis). J. Bus. Econ. Dev. 2017, 2(4), 215-226. doi: 10.11648/j.jbed.20170204.13

Copy | Download

AMA Style

Paul Ndubuisi. Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis). J Bus Econ Dev. 2017;2(4):215-226. doi: 10.11648/j.jbed.20170204.13

Copy | Download

@article{10.11648/j.jbed.20170204.13,
  author = {Paul Ndubuisi},
  title = {Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis)},
  journal = {Journal of Business and Economic Development},
  volume = {2},
  number = {4},
  pages = {215-226},
  doi = {10.11648/j.jbed.20170204.13},
  url = {https://doi.org/10.11648/j.jbed.20170204.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20170204.13},
  abstract = {This study investigates empirically the fiscal policy impact on the economic growth index in Nigeria for the period 1985-2015. Data for the study were collected from secondary sources. The expost facto research design was adopted for the study. The data were analysed using OLS multiple regression, unit root test, co-integration and Error Correction mechanism (ECM). The results revealed that the variables were all stationary at level and co-integrated of the same order in the long-run. The result also showed that fiscal policy significantly influenced the rate of growth in Nigeria economy. It was therefore recommended that government should ensure transparency in budget implementation and fiscal discipline to put Nigeria on the path of sustainable growth.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis)
AU  - Paul Ndubuisi
Y1  - 2017/07/20
PY  - 2017
N1  - https://doi.org/10.11648/j.jbed.20170204.13
DO  - 10.11648/j.jbed.20170204.13
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 215
EP  - 226
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20170204.13
AB  - This study investigates empirically the fiscal policy impact on the economic growth index in Nigeria for the period 1985-2015. Data for the study were collected from secondary sources. The expost facto research design was adopted for the study. The data were analysed using OLS multiple regression, unit root test, co-integration and Error Correction mechanism (ECM). The results revealed that the variables were all stationary at level and co-integrated of the same order in the long-run. The result also showed that fiscal policy significantly influenced the rate of growth in Nigeria economy. It was therefore recommended that government should ensure transparency in budget implementation and fiscal discipline to put Nigeria on the path of sustainable growth.
VL  - 2
IS  - 4
ER  -

Copy | Download

Author Information

Paul Ndubuisi

Department of Banking and Finance, Abia State University, Okigwe, Uturu

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Paul Ndubuisi. (2017). Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis). Journal of Business and Economic Development, 2(4), 215-226. https://doi.org/10.11648/j.jbed.20170204.13

Copy | Download

ACS Style

Paul Ndubuisi. Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis). J. Bus. Econ. Dev. 2017, 2(4), 215-226. doi: 10.11648/j.jbed.20170204.13

Copy | Download

AMA Style

Paul Ndubuisi. Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis). J Bus Econ Dev. 2017;2(4):215-226. doi: 10.11648/j.jbed.20170204.13

Copy | Download

@article{10.11648/j.jbed.20170204.13,
  author = {Paul Ndubuisi},
  title = {Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis)},
  journal = {Journal of Business and Economic Development},
  volume = {2},
  number = {4},
  pages = {215-226},
  doi = {10.11648/j.jbed.20170204.13},
  url = {https://doi.org/10.11648/j.jbed.20170204.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20170204.13},
  abstract = {This study investigates empirically the fiscal policy impact on the economic growth index in Nigeria for the period 1985-2015. Data for the study were collected from secondary sources. The expost facto research design was adopted for the study. The data were analysed using OLS multiple regression, unit root test, co-integration and Error Correction mechanism (ECM). The results revealed that the variables were all stationary at level and co-integrated of the same order in the long-run. The result also showed that fiscal policy significantly influenced the rate of growth in Nigeria economy. It was therefore recommended that government should ensure transparency in budget implementation and fiscal discipline to put Nigeria on the path of sustainable growth.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis)
AU  - Paul Ndubuisi
Y1  - 2017/07/20
PY  - 2017
N1  - https://doi.org/10.11648/j.jbed.20170204.13
DO  - 10.11648/j.jbed.20170204.13
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 215
EP  - 226
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20170204.13
AB  - This study investigates empirically the fiscal policy impact on the economic growth index in Nigeria for the period 1985-2015. Data for the study were collected from secondary sources. The expost facto research design was adopted for the study. The data were analysed using OLS multiple regression, unit root test, co-integration and Error Correction mechanism (ECM). The results revealed that the variables were all stationary at level and co-integrated of the same order in the long-run. The result also showed that fiscal policy significantly influenced the rate of growth in Nigeria economy. It was therefore recommended that government should ensure transparency in budget implementation and fiscal discipline to put Nigeria on the path of sustainable growth.
VL  - 2
IS  - 4
ER  -

Copy | Download