Fiscal policy and economic growth in nigeria pdf free

A comparative analysis emmanuel elakhe masters thesis economics other publish your bachelors or masters thesis, dissertation, term paper or essay. The research material available to the researcher is insufficient, thereby limiting the study. Can fiscal policy curb the problem of economic growth and development in nigeria. Macroeconomic policies and economic growth in nigeria. Results of regression analysis 308 notes 311 references and other resources 315 boxes 1. Nigeria, fiscal policies, economic growth, debt to gdp ratio. This paper examines the impact of fiscal policy on economic growth of the nigerian economy. Impact of monetary policy on economic growth in nigeria. Objectives of the study achieving price stability and ultimately economic growth is the major objective of monetary policy. Cyclical behavior of fiscal policy among subsaharan. Economic fluctuations and growth one view of government fiscal policy is that it stifles dynamic economic growth through the distortionary effects of taxation and inefficient government spending. The impact of budget deficit on economic growth of nigeria pdf.

The scope of the study covers fiscal policy and economic growth in nigeria from 19802012. Fiscalmonetary policy and economic growth in nigeria hrmars. Falade and folorunso 2015 examined the relative effectiveness of fiscal and monetary policy instruments on economic growth sustainability in nigeria in order to determine the appropriate mix of. Oct, 2014 fiscal and monetary policy and its effect on the growth of nigeria economy a. May 22, 2017 the scope of the study covers fiscal policy and economic growth in nigeria from 19802012. For a discussion of the growth impact of volatility on the nigerian economy.

The impact of central bank of nigeria cashless policy in nigeria economy 1martin c. Fiscal policy in nigeria international monetary fund. A disaggregated approach ali danjumah umaru and ahmad usman gatawa department of economics,sokoto state university, sokoto email. The problem faced in the country is the lack of assessment of what form of fiscal policy rules will perform better in reducing debt accumulation and promote investment and the necessary medium term budget deficit stability. The debate on the use of fiscal policy for economic stabilization and inducement of economic growth is an old one. Pdf this article aims at determining the impact of various components of fiscal policy on the nigerian economy. It equally helps to maintain full employment condition. Growth and fiscal consequences of terrorism in nigeria. The positive impact of these policy tools on economic performance will help the country achieve sustained growth and while reducing economic instability. The cyclical behavior of fiscal policy affects subsaharan african countries because many of them depend on commodity exports or have been gaining access to international capital markets in recent.

Fiscal policy is often used in conjunction with monetary policy. Nigeria economic outlook top 10 themes for 2019 disclaimer this document has been prepared for general guidance on matters of interest only, and does not constitute professional advice. The various tools of fiscal policy such as budget, taxation, public expenditure, public works and public debt can go a long way for. The impact of fiscal policy on economic growth the keep. In the medium and long term, fiscal policy also plays a significant role in the economy. Fiscal policy is a governments decisions regarding spending and taxing. The impact of fiscal policy on the nigeria economy economics. Impact of budget deficit on economic growth of nigeria. The application of the ecm and granger causality test reveals that total government expenditure tge has a positive and a significant. Fiscal policy vs monetary policy difference and comparison. The general objective of the study is to look at the impact of fiscal and monetary policy on the economic growth of nigeria. How fiscal policy and monetary policy affect the economy. This research work focus on econometric analysis of the impact of fiscal policy on nigeria economy. The economic policy of governments covers the systems for setting levels of taxation, government budgets, the money supply and interest rates as well as the.

The study investigates the impact of fiscal policy on economic growth in nigeria for the period 19852018. The dummy variable shows that there is a significant difference between civilian and military regimes with respect to fiscal decentralization and economic welfare in nigeria. Ii oil revenues and fiscal sustainability in nigeria. Department of accountancy akwa ibom state polytechnic, ikot osurua, ikot ekpene, nigeria email. This is contrary to persuasive monetary policy advice for inflation targeting pursued by central banks and the international monetary fund imf. In nigeria, 10 studied the contributions of public expenditure to economic growth in nigeria over the periods 1960 to 1992. An econometric investigation abubakar risk of overheating. The impacts of public expenditures on economic growth have been revisited in this. In fact, governments often prefer monetary policy for stabilising the economy. Fiscal and monetary policy and economic growth in nigeria. Also, both monetary and fiscal policies should be complementary. The positive impact of these policy tools on economic. Economic fluctuations and growth one view of government fiscal policy is that it stifles dynamic economic growth. D school of management sciences national open university of nigeria abstract the role of fiscal policies in the development of emerging economies has been a major source of concern in economic literature.

The economic recovery and growth plan ergp, a medium term plan for 2017 2020, builds on the sip and has been developed for the purpose of restoring economic growth while leveraging the ingenuity. Fiscal policy, public debt and monetary policy in emerging. The study used data from 1970 to 2011 and employed. Nov 21, 2019 fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nations economy. The study developed and specified a multiple regression model to establish the relationship between the dependent variable and the independent variables. Pdf implications of fiscal policy measures on growth of.

The paper suggest that for any meaningful progress towards fiscal prudence on the part of government to occur, some powerful prostability stakeholders strong enough to challenge government fiscal recklessness will need to emerge. The nigerian economic report ner is a regular publication of the world bank. This paper has examined empirically the contribution of fiscal policy in the achievement of sustainable economic growth in nigeria. Pdf fiscal and monetary policy instruments and economic. Adefeso and mobolaji, 2010 while some other studies. The effect of fiscal policy on economic growth in nigeria. Theory and evidence 293 policy options 301 annex 9a. Pdf fiscal policy and economic growth in south africa.

Papers are free to use material contained therein in other. They also position the federal government to formulate and implement economic policy. This investigates the three elements of fiscal policy 1 government spending, taxation and the other source of revenue which finance public spending and the resulting budget deficit or surplus which occurs wherever government expenditure does not exactly equal revenue. Time series data were collected from the central bank of nigeria cbn, the international monetary fund imf and the world bank. Oct 08, 2019 the pace of economic recovery remains slow, as depressed private consumption and investors waitandsee attitude kept growth in the first half of the year at 2 percent, a rate significantly below population growth.

In economics and political science, fiscal policy is the use of government revenue collection. Jan 27, 2020 the second type of fiscal policy is contractionary fiscal policy, which is rarely used. The tools of contractionary fiscal policy are used in reverse. Fiscal policy has been identified as a means of generating growth. The study was undertaken to ascertain impact of fiscal policies in nigeria economy. In the cause of the study, there are some factors which limited the scope of the study. Analysis of the impact of fiscal policy on nigerias economic. The findings from the study provided support for fiscal policyled growth. Taxation, major source of government revenue as well government expenditure are important channels of transmission between fiscal policy and growth. Additionally, it is designed to try to keep gdp growth at 2%3% and the unemployment rate near the natural unemployment rate of. Both fiscal and monetary policy can be either expansionary or contractionary. May 03, 2016 this study investigated the effect of fiscal policy on economic growth in nigeria. Adefeso and mobalaji 2010 wrote on the fiscal monetary policy and economic growth in nigeria. The impact of fiscal and monetary policy on nigerian.

Data were collected from the central bank of nigeria cbn statistical bulletins. The paper suggest that for any meaningful progress towards fiscal prudence on the part of government to occur, some powerful prostability stakeholders strong enough to challenge government fiscal. Analysis of the impact of fiscal policy on nigerias economic growth 19802012 introduction. Investigations show that nigeria was caught in the deficit trap since early 1980s when the world. United nations economic commission for africa fiscal policy for financing sustainable development in africa b ordering information to order copies of this report, please contact. D school of management sciences national open university of nigeria abstract the role of fiscal policies in the development of emerging economies has been a major source of concern in economic. It is the sister strategy to monetary policy through which a. Thestudy examined factors surrounding measures of fiscal policy and its effect on economic growth in nigeria from 1981 2014. The paper examined the impact of monetary policy on economic growth in nigeria by developing a model that is able to investigate how monetary policy of the government has affected economic growth through the use of multivariable regression analysis. Being economy has long history of its economic problems irrespective of developing economy regardless of the nature of economic practices. Meaning that the emphasis on fiscal action of the government has led to greater distortion in the nigerian economy.

In chapter three, which is the structural composition, the macroeconomic policy as it affect nigeria. We simply used descriptive statistics to show contribution of government fiscal policy to economic growth, and to ascertain and explain growth rates, and an ordinary least square ols in a multiple form to ascertain the relationship between economic growth and government expenditure. The purpose of the paper is to examine the effect of fiscal policy variables on economic growth in south africa. The study investigated effect of monetary policy on economic growth in nigeria.

Appah, 2010 in his study, the relationship between fiscal policy and economic growth in nigeria. Fiscal policy is the means by which a government adjusts its levels of spending in order to monitor and influence a nations economy. Using the solow growth model estimated with the use of ordinary least square method, it was found that fiscal policy has not been effective in the area of promoting sustainable economic growth in nigeria. Their major objective was to reestimate and reexamine the relative effectiveness of fiscal and monetary policies on economic growth in nigeria using annual data from 1970 to 2007. The impact of central bank of nigeria cashless policy in. The effect of fiscal policies on the quality of growth independent. An empirical trend analysis onyemaechi joseph onwe, ph. Governments fiscal deficit expands above budget nigeria economic outlook top 10 themes for 2019 0. A comparative analysis emmanuel elakhe masters thesis economics other publish your bachelors or masters thesis, dissertation, term. What nigeria needs is a fiscal policy rule, which would commit the government to a certain level of conduct in fiscal and budgetary management. The main objective is to analysis how various components of fiscal policy have contributed to the growth rate of the nigerian economy. Its goal is to slow economic growth and stamp out inflation.

Budget deficit is an expansionary policy measure adopted when the economic growth of a country assume negative value but has become a norm in nigeria, download the full project work with reference and abstract. The pace of economic recovery remains slow, as depressed private consumption and investors waitandsee attitude kept growth in the first half of the year at 2 percent, a rate significantly below population growth. Fiscal policy rules, illustrative projections, in percent of gdp 34. Impact of fiscal policy on economic growth in nigeria 1986 2012, ols method of analysis. It influences the economy using the money supply and interest rates. Fiscal policy and economic growth in nigeria, 1970 2011. Omojimite and iboma 2012 on their paper focused on fiscal deficit and the productivity of the nigeria. Policy measures taken to increase gdp and economic growth are called expansionary. The main objective of the study is to ascertain the effect of fiscal policy measures on growth of the nigerian economy. This paper is set out to investigate monetary and fiscal policy has tools for economic growth in nigeria and to also investigate which of this tools is most appropriate in the nigerian present state of economy using time series data spanning from 1981 to 2014. The impact of monetary and fiscal policies on nigerian.

Introduction during the 1980s and 1990s, the vulnerability of emes to shocks was often exacerbated by high fiscal deficits, underdeveloped domestic bond markets, and largecurrency and maturity mismatches. Role of fiscal policy in economic development of under developed countries. The major objective is to identify the contribution of fiscal policy to nigeria economic. Furthermore, it is put together to help in accelerating the rate of investment.

Fiscal policy is one of the most powerful instru ments that. Pdf monetary and fiscal policy, tools for economic growth. We simply used descriptive statistics to show contribution of government fiscal policy to economic growth, and to ascertain and explain growth rates, and an ordinary least square ols in a multiple form to ascertain the relationship between economic growth and government expenditure components after ensuring data stationarity. The fiscal policy variables considered in the study include government gross fixed. This study investigated the impact of fiscal and monetary policy on nigerian economic growth from 1981 to 2015, with the interest in exploring which of fiscal or monetary policy has been effective in propelling economic growth in nigeria and how gdp growth responds to the monetary and fiscal policy shock. Measures taken to rein in an overheated economy usually when inflation is too high are called contractionary measu. Fiscal policy and economic growth in nigeria, 1970 2011 udokang, a. Fiscal and monetary policy and its effect on the growth of. It is also evident from some studies that monetary rather than fiscal policy impacted a strong and significant influence on the growth of the nigerian economy ajisafe and folorunso, 2002.

The impact was marginally higher only n140 million or 14% contribution to gdp during deregulation, than in the regulation. The longterm impact of inflation can damage the standard of living as much as a recession. Fiscal and monetary policy instruments and economic growth. Unlike previous investigations, our estimates are free from biases. Get free research paper on an econometric analysis of the impact of fiscal policy on nigeria economy our project topics and materials are suitable for students in nigeria with case studies in pdf, doc. Fiscal policy and nigerian economic growth olawunmi. Monetary policy refers to policies that affect interest rates and the money supply.

This ambiguity of the connection between fiscal policy and economic growth is due, in the main part, to the fact that fiscal policy is not a fundamental source of economic growth. Economic outlook 3 contents theme 1 oil prices still lower for longer theme 2 economy growth gets a boost from high oil prices theme 3 inflation declines sharply, driven mainly by base effects theme 4 monetary policy rate set to fall, and then rise theme 5 governments fiscal. Isip 2017, growth and fiscal consequences of terrorism in nigeria. Furthermore, it is put together to help in accelerating the rate of investment and capital formation. Fiscal policy, economic growth, government expenditure, taxation, fiscal balances. The central bank tries to maintain price stability through controlling the level of money supply. Ideally, the economy should grow between 2 % and 3. Budget deficit is an expansionary policy measure adopted when the economic growth of a country assume negative value but has become a norm in nigeria. Fiscal policy deals with government deliberate actions in spending money and levying taxes with a view to influencing macroeconomic variables in a desired direction which includes sustainable economic growth, high employment creation and low inflation. Emphasis on various components of public expenditure. Each edition of the ner includes a macroeconomic overview and gives special attention to an additional topic of high policy.

For example, there is no specific or identifiable economic growth or development in nigeria and this questions the possibility of the policy ever bringing the countrys economy to its optimum and desired level. Thus, monetary policy plays a stabilizing role in influencing economic growth. Key issue in this debate relates to the efficacy of public expenditure on. We simply used descriptive statistics to show contribution of government fiscal policy to economic growth, and to ascertain and explain growth rates, and an ordinary least square ols in a multiple form to ascertain the relationship between economic growth. Fiscal policy as an engine of economic growth in nigeria. The goal of the nigerian fiscal policy is best achieved via stable instruments, like government expenditure and interest rate. Headline inflation has fallen, reaching its lowest level since january 2016, helped by lower food price inflation. Impact of fiscal policy on the growth of agricultural sector in nigeria, 198120 okoh, abo sunday department of economics, federal university wukari, nigeria. Results obtained showed that there is a difference in the effectiveness of fiscal policy in stimulating economic growth during and after regulation periods. This is contrary to persuasive monetary policy advice for inflation targeting. This paper assesses how fiscal and monetary policies influence economic growth and development in nigeria. We are, however, of the opinion that a wellcoordinated macroeconomic policy is needed to achieve economic growth in nigeria.

This article aims at determining the impact of various components of fiscal policy on the nigerian economy. Fiscal policy is designed to help in managing the rate of growth of the nigerian economy towards ensuring its full stability. Fiscal policy is the general name for the federal governments taxation and expenditure decisions and activities, particularly as they affect the economy. Fiscal policy, public debt and monetary policy in emes. Inflation 12 fiscal policy and the government budget economic outlook 15. The time series data is the market controlled period covering 1986 to 2016. Public disclosure authorized nigeria economic report. Fiscalmonetary policy and economic growth in nigeria. The objective of fiscal policy is to create healthy economic growth. Fiscal policy is still widely recognized as a potent tool for enhancing growth, redistributing income and reducing poverty though the nigeria. Dec 10, 2019 fiscal policy aims to stabilise economic growth, avoiding a boom and bust economic cycle. There is need for an improvement in government expenditure on health, education and economic services, as components of productive expenditure, to boost economic growth. Fiscal policy, stabilization, and growth publications inter.

If a government wants to stimulate growth in the economy, it will increase. Generally, this study will dwell on the overview of monetary policy situations in the nigerian economy. The natural log of the gdp was used as the dependent variables against the explanatory monetary policy variables. It was found that fiscal policy has not been effective in the area of promoting sustainable economic growth in nigeria. Now the major research question has been on the conditions that improve the effectiveness of fiscal policy intervention on economic growth and recent years have seen a revival of the debate about the role of fiscal policy in stimulating economic activity. This study involves comparative analysis of the impact of fiscal policy on economic growth in nigeria during regulation and deregulation periods.