Analysis of Fiscal Deficit Sustainability in Nigerian Economy: An Error Correction Approach
AbstractThe study investigates the sustainability of fiscal policy in Nigeria over the period of 1980-2010 to determine whether or not the government has violated intertemporal government budget constraint. Using error correction method of analysis, the study revealed that fiscal policy was weakly sustainable in the economy of Nigeria. This study therefore recommends that government should improve on her tax revenue generation and other source of income but limit her expenditure to growth enhancing projects.
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Bibliographic InfoArticle provided by Asian Economic and Social Society in its journal Asian Economic and Financial Review.
Volume (Year): 4 (2014)
Issue (Month): 2 (February)
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Sustainability; Fiscal policy; Error correction; Constraint; Economy;
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- Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
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