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Fiscal Policy and Investment Growth in Nigeria

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Abstract

This study examined the effect of fiscal policy on investment growth in Nigeria. The population of the study consists of the Nigeria federal fiscal policy and economic transformation from inception (1960). Purposive sampling technique was used for the study and data was taken from 1990 to 2019. The study adopts secondary data sourced reputably to ensure content validity and reliability, data was extracted from Central Banks of Nigeria statistical bulletin and World development Indicators. The analysis with the use of Econometric view was prepared in compliance with the applicable methodology. Bound cointegration testing and autoregresive distributed lag modelling was used to ascertain the longrun and shortrun effect. Ex-post facto research design was used and inferences were done at 5% significant level. The results revealed that fiscal balance is positive and statistically insignificant to influence investment growth at 5% level, minimum rediscounting rate is negative and statistically significant to influence investment growth at 5% level, while inflation rate is negative and statistically significant to influence investment growth and economic development at 5% level. This study concluded that fiscal policy should be articulated in order to bring out effective results. Further studies can use exchange rate as control variables and longer years from 1980 to see implication of SAP and post SAP.

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  • Godwin Emmanuel, Oyedokun & Aminat Murtala, Abdulazeez, & Moyosore Akingbade, Adewumi,, 2021. "Fiscal Policy and Investment Growth in Nigeria," Multidisciplinary Journal of Management Sciences, Association of Forensic Accounting Researchers (AFAR), vol. 3(2), pages 92-102, July - Se.
    • Handle: RePEc:ris:amjoms:0044
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    1. Michael Adebayo Ajayi & Olufemi Adewale Aluko, 2017. "Evaluating the Relative Impact of Monetary and Fiscal Policy in Nigeria using the St. Louis Equation," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(1), pages 40-50, February.
    2. L. Lambertini & R. Rovelli, 2003. "Monetary and fiscal policy coordination and macroeconomic stabilization. A theoretical analysis," Working Papers 464, Dipartimento Scienze Economiche, Universita' di Bologna.
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