IDEAS home Printed from https://ideas.repec.org/a/aoj/ajeaer/v4y2017i2p91-98id234.html
   My bibliography  Save this article

Causality between Government Expenditure and Government Revenue in Nigeria

Author

Listed:
  • Balogun Abdulrasheed

Abstract

This study seeks to establish the causality between government expenditure and government revenue in Nigeria. The type of research adopted is ex post-facto and the updated annual time series data between1986-2015 were obtained through Statistical data bulletins and annual reports of Central Bank of Nigeria in order to evaluate the variables such as total revenue and aggregate public expenditure of the federal government. The study applied co-integration statistical method and vector autoregressive techniques comprising an Error Correction Model (ECM) and Augmented Dickey Fuller as the methods of analyses. The findings showed that there is spend-revenue practice in Nigeria in line with the theory of Barro (1974); Peacock and Wiseman. (1979) indicating that changes in government expenditure triggered changes in government revenue. The Co-integration tests also revealed that there is existence of long run equilibrium relationships between government revenue and expenditure variables. The outcome of this study showed that increase in government expenditure without a simultaneous increase in revenue could broaden the budget deficit.

Suggested Citation

  • Balogun Abdulrasheed, 2017. "Causality between Government Expenditure and Government Revenue in Nigeria," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 4(2), pages 91-98.
    • Handle: RePEc:aoj:ajeaer:v:4:y:2017:i:2:p:91-98:id:234
    as

    Download full text from publisher

    File URL: http://asianonlinejournals.com/index.php/AJEER/article/view/234/211
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nor Aishah Mohd Ali & Nawal Kasim, 2019. "Talent Management for Shariah Auditors: Case Study Evidence From the Practitioners," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 252-266, May.
    2. Aminu, Alarudeen & Raifu, Isiaka Akande, 2018. "Dynamic Nexus between Government Revenues and Expenditures in Nigeria: Evidence from Asymmetric Causality and Cointegration Methods," MPRA Paper 97880, University Library of Munich, Germany.
    3. Hambeleleni Iiyambo & Teresia Kaulihowa, 2020. "An assessment of the relationship between public debt, government expenditure and revenue in Namibia," Public Sector Economics, Institute of Public Finance, vol. 44(3), pages 331-353.
    4. Awode Segun Subair & Akpa Emeka Okoro, 2018. "Testing Wagner’s Law in Nigeria in the Short and Long-run," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(7), pages 7-23, DECEMBER.
    5. Parlindungan Harahap & R. A. E. Virgana & Wiwik Tri Hapsari & Tezza Adriansyah Anwar, 2019. "Analysis of Distribution Information System of Rice Supply Chain Management at PT. Jatisari Sri Rejeki," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 321-326, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aoj:ajeaer:v:4:y:2017:i:2:p:91-98:id:234. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Lim (email available below). General contact details of provider: http://asianonlinejournals.com/index.php/AJEER/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.