Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis)
Journal of Business and Economic Development
Volume 2, Issue 4, November 2017, Pages: 215-226
Received: May 9, 2017; Accepted: May 20, 2017; Published: Jul. 20, 2017
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Author
Paul Ndubuisi, Department of Banking and Finance, Abia State University, Okigwe, Uturu
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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.
Keywords
Fiscal Policy, Economic Growth, Capital Expenditure, Recurrent Expenditure, Domestic Debt
To cite this article
Paul Ndubuisi, Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis), Journal of Business and Economic Development. Vol. 2, No. 4, 2017, pp. 215-226. doi: 10.11648/j.jbed.20170204.13
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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