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Recession and the Challenge of Sustainable Economic Growth in Nigeria: An Evaluation of Macroeconomic Policies

Author

Listed:
  • Oseni, I. O.

    (Olabisi Onabanjo University)

  • Okwu, A. T.

    (Babcock University)

  • Babalola, D. A.

    (Babcock University)

  • Adegboyega, S. B.

    (Olabisi Onabanjo University)

Abstract

The recent economic recession in Nigeria was manifested shortly after the successful democratic-to-democratic transmission of political power in 2015, against the backdrop of continental and global economy rankings of the country as the largest in Africa, and 24th in the world as at 2014. Based on relevant variables of datasets from 1981 to 2016, this paper employed error correction mechanism on log-linear regression model to evaluate macroeconomic policies being implemented to stabilise and restore the economy on the path of sustainable growth. The variables were surrogates of fiscal, monetary, exchange rate and supply-side policies. The results showed that the respective macroeconomic policies had mixed effects, but jointly had significant growth-retarding effect on the country’s economy. Therefore, the paper concludes that macroeconomic policies had heterogeneous effects, and emphasised the need for appropriate mix of macroeconomic policies to be implemented to sustain and move the economy out of the recession trap.

Suggested Citation

  • Oseni, I. O. & Okwu, A. T. & Babalola, D. A. & Adegboyega, S. B., 2019. "Recession and the Challenge of Sustainable Economic Growth in Nigeria: An Evaluation of Macroeconomic Policies," Tanzanian Economic Review, Department of Economics, University of Dar es Salaam, vol. 9(1), pages 93-112, June.
    • Handle: RePEc:ris:tanzer:0005
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    recession; macroeconomic policies; sustainable economic growth; loglinear regression; error correction model;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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