The Effect of Fiscal Policy on Economic Growth in Nigeria

Ubesie Madubuko Cyril

doi:doi:10.11648/j.jfa.20160403.16

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The Effect of Fiscal Policy on Economic Growth in Nigeria

Ubesie Madubuko Cyril

Published in Journal of Finance and Accounting (Volume 4, Issue 3)

Received: 24 April 2016 Accepted: 7 May 2016 Published: 20 May 2016

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Abstract

This study investigated the effect of fiscal policy on economic growth in Nigeria. The main objective is to analysis how various components of fiscal policy have contributed to the growth rate of the Nigerian economy. This study uses secondary data which were obtained from the Statistical Bulletin of the Central Bank of Nigeria (CBN) covering the period from 1985 to 2015. Descriptive statistics and the ordinary least square (OLS) multiple regression analytical method was used for the data analysis after ensuring data stationarity. The results from the analysis revealed that total government expenditures is significantly and positively related to government revenue, with expenditures climaxing faster than revenue. Investment expenditures were much lower than recurrent expenditures evidencing the poor growth in the country’s economy. Consequently, it is recommended that government should formulate and implement viable fiscal policy options that will stabilize the economy. This could be achieved through the practice of true fiscal federalism and the decentralization of the various levels of government in Nigeria.

Published in	Journal of Finance and Accounting (Volume 4, Issue 3)
DOI	10.11648/j.jfa.20160403.16
Page(s)	140-145
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), 2016. Published by Science Publishing Group

Keywords

Fiscal Policy, Expenditure, Economic Growth, Sationarity, CBN, OLS, GDP

References

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APA Style

Ubesie Madubuko Cyril. (2016). The Effect of Fiscal Policy on Economic Growth in Nigeria. Journal of Finance and Accounting, 4(3), 140-145. https://doi.org/10.11648/j.jfa.20160403.16

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ACS Style

Ubesie Madubuko Cyril. The Effect of Fiscal Policy on Economic Growth in Nigeria. J. Finance Account. 2016, 4(3), 140-145. doi: 10.11648/j.jfa.20160403.16

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AMA Style

Ubesie Madubuko Cyril. The Effect of Fiscal Policy on Economic Growth in Nigeria. J Finance Account. 2016;4(3):140-145. doi: 10.11648/j.jfa.20160403.16

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@article{10.11648/j.jfa.20160403.16,
  author = {Ubesie Madubuko Cyril},
  title = {The Effect of Fiscal Policy on Economic Growth in Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {4},
  number = {3},
  pages = {140-145},
  doi = {10.11648/j.jfa.20160403.16},
  url = {https://doi.org/10.11648/j.jfa.20160403.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20160403.16},
  abstract = {This study investigated the effect of fiscal policy on economic growth in Nigeria. The main objective is to analysis how various components of fiscal policy have contributed to the growth rate of the Nigerian economy. This study uses secondary data which were obtained from the Statistical Bulletin of the Central Bank of Nigeria (CBN) covering the period from 1985 to 2015. Descriptive statistics and the ordinary least square (OLS) multiple regression analytical method was used for the data analysis after ensuring data stationarity. The results from the analysis revealed that total government expenditures is significantly and positively related to government revenue, with expenditures climaxing faster than revenue. Investment expenditures were much lower than recurrent expenditures evidencing the poor growth in the country’s economy. Consequently, it is recommended that government should formulate and implement viable fiscal policy options that will stabilize the economy. This could be achieved through the practice of true fiscal federalism and the decentralization of the various levels of government in Nigeria.},
 year = {2016}
}

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TY  - JOUR
T1  - The Effect of Fiscal Policy on Economic Growth in Nigeria
AU  - Ubesie Madubuko Cyril
Y1  - 2016/05/20
PY  - 2016
N1  - https://doi.org/10.11648/j.jfa.20160403.16
DO  - 10.11648/j.jfa.20160403.16
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 140
EP  - 145
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20160403.16
AB  - This study investigated the effect of fiscal policy on economic growth in Nigeria. The main objective is to analysis how various components of fiscal policy have contributed to the growth rate of the Nigerian economy. This study uses secondary data which were obtained from the Statistical Bulletin of the Central Bank of Nigeria (CBN) covering the period from 1985 to 2015. Descriptive statistics and the ordinary least square (OLS) multiple regression analytical method was used for the data analysis after ensuring data stationarity. The results from the analysis revealed that total government expenditures is significantly and positively related to government revenue, with expenditures climaxing faster than revenue. Investment expenditures were much lower than recurrent expenditures evidencing the poor growth in the country’s economy. Consequently, it is recommended that government should formulate and implement viable fiscal policy options that will stabilize the economy. This could be achieved through the practice of true fiscal federalism and the decentralization of the various levels of government in Nigeria.
VL  - 4
IS  - 3
ER  -

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Author Information

Ubesie Madubuko Cyril

Department of Accountancy, Faculty of Management Sciences, Enugu State University of Sciences and Technology, Enugu, State, Nigeria

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APA Style

Ubesie Madubuko Cyril. (2016). The Effect of Fiscal Policy on Economic Growth in Nigeria. Journal of Finance and Accounting, 4(3), 140-145. https://doi.org/10.11648/j.jfa.20160403.16

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ACS Style

Ubesie Madubuko Cyril. The Effect of Fiscal Policy on Economic Growth in Nigeria. J. Finance Account. 2016, 4(3), 140-145. doi: 10.11648/j.jfa.20160403.16

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AMA Style

Ubesie Madubuko Cyril. The Effect of Fiscal Policy on Economic Growth in Nigeria. J Finance Account. 2016;4(3):140-145. doi: 10.11648/j.jfa.20160403.16

Copy | Download

@article{10.11648/j.jfa.20160403.16,
  author = {Ubesie Madubuko Cyril},
  title = {The Effect of Fiscal Policy on Economic Growth in Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {4},
  number = {3},
  pages = {140-145},
  doi = {10.11648/j.jfa.20160403.16},
  url = {https://doi.org/10.11648/j.jfa.20160403.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20160403.16},
  abstract = {This study investigated the effect of fiscal policy on economic growth in Nigeria. The main objective is to analysis how various components of fiscal policy have contributed to the growth rate of the Nigerian economy. This study uses secondary data which were obtained from the Statistical Bulletin of the Central Bank of Nigeria (CBN) covering the period from 1985 to 2015. Descriptive statistics and the ordinary least square (OLS) multiple regression analytical method was used for the data analysis after ensuring data stationarity. The results from the analysis revealed that total government expenditures is significantly and positively related to government revenue, with expenditures climaxing faster than revenue. Investment expenditures were much lower than recurrent expenditures evidencing the poor growth in the country’s economy. Consequently, it is recommended that government should formulate and implement viable fiscal policy options that will stabilize the economy. This could be achieved through the practice of true fiscal federalism and the decentralization of the various levels of government in Nigeria.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - The Effect of Fiscal Policy on Economic Growth in Nigeria
AU  - Ubesie Madubuko Cyril
Y1  - 2016/05/20
PY  - 2016
N1  - https://doi.org/10.11648/j.jfa.20160403.16
DO  - 10.11648/j.jfa.20160403.16
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 140
EP  - 145
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20160403.16
AB  - This study investigated the effect of fiscal policy on economic growth in Nigeria. The main objective is to analysis how various components of fiscal policy have contributed to the growth rate of the Nigerian economy. This study uses secondary data which were obtained from the Statistical Bulletin of the Central Bank of Nigeria (CBN) covering the period from 1985 to 2015. Descriptive statistics and the ordinary least square (OLS) multiple regression analytical method was used for the data analysis after ensuring data stationarity. The results from the analysis revealed that total government expenditures is significantly and positively related to government revenue, with expenditures climaxing faster than revenue. Investment expenditures were much lower than recurrent expenditures evidencing the poor growth in the country’s economy. Consequently, it is recommended that government should formulate and implement viable fiscal policy options that will stabilize the economy. This could be achieved through the practice of true fiscal federalism and the decentralization of the various levels of government in Nigeria.
VL  - 4
IS  - 3
ER  -

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