IDEAS home Printed from https://ideas.repec.org/a/dug/actaec/y2020i3p118-139.html
   My bibliography  Save this article

Fiscal Imbalance and Macroeconomic Instability in Nigeria: Implications for National Development

Author

Listed:
  • Ubong Effiong

    (University of Uyo)

  • Supper Okijie

    (University of Uyo)

Abstract

This paper sought to investigate the influence of fiscal imbalance on inflation and economic growth in Nigeria for the period 1981 to 2019. In this paper, we utilized the ordinary least squares (OLS) approach in achieving the set objective. The correlation analysis was also utilized to ascertain the nature of the relationship between fiscal imbalance and inflation and economic growth. The correlation analysis revealed that fiscal imbalance has a positive relationship with economic growth, but a negative relationship with inflation. From the regression analysis, it was discovered that fiscal imbalance has a positive and significant effect on economic growth. However, the effect of fiscal imbalance on inflation was negative and statistically significant. Though fiscal imbalance may propel economic growth, it tends to accelerate inflation in the Nigerian economy over the study period. The policy implication of these findings for national development is that fiscal imbalance should be augmented with the appropriate discretionary monetary policy to achieve economic growth and price stability simultaneously.

Suggested Citation

  • Ubong Effiong & Supper Okijie, 2021. "Fiscal Imbalance and Macroeconomic Instability in Nigeria: Implications for National Development," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 17(3), pages 118-139, JUNE.
    • Handle: RePEc:dug:actaec:y:2020:i:3:p:118-139
    as

    Download full text from publisher

    File URL: https://dj.univ-danubius.ro/index.php/AUDOE/article/view/980/1358
    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:dug:actaec:y:2020:i:3:p:118-139. 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: Daniela Robu (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    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.