IDEAS home Printed from https://ideas.repec.org/a/asi/ajoerj/v10y2020i3p74-80id4309.html
   My bibliography  Save this article

Fiscal Policy Sustainability in Nigeria: ARDL Bounds Testing Technique

Author

Listed:
  • Dauda Gbolagade Adebisi
  • Gbadebo Salako

Abstract

This study investigates fiscal policy’s sustainability in Nigeria from 1961-2016, using annual data of public revenues and expenditure, all as a ratio of GDP. The study applies ARDL bounds testing cointegration technique to determine an equilibrium relationship between the variables. Also, Autoregressive Distributed Lag (ARDL) technique of data analysis is employed to examine the compliance of the government of Nigeria with the budget constraint equation. The results show no equilibrium occurs between public revenue and expenditure, indicating absence of sustainability in the government finances in Nigeria. It is expedient, therefore, that government expands the tax base, reduce tax rates and be cautious in her spending to avoid unproductive expenditure.

Suggested Citation

  • Dauda Gbolagade Adebisi & Gbadebo Salako, 2020. "Fiscal Policy Sustainability in Nigeria: ARDL Bounds Testing Technique," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 10(3), pages 74-80.
    • Handle: RePEc:asi:ajoerj:v:10:y:2020:i:3:p:74-80:id:4309
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5004/article/view/4309/6673
    Download Restriction: no
    ---><---

    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:asi:ajoerj:v:10:y:2020:i:3:p:74-80:id:4309. 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: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5004/ .

    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.