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Fiscal Policy and Diversifcation in Nigeria: A Time-Series Analysis |
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| รหัสดีโอไอ | |
| Creator | Bashir Olayinka Kolawole |
| Title | Fiscal Policy and Diversifcation in Nigeria: A Time-Series Analysis |
| Contributor | Eberechukwu E. Eleanya |
| Publisher | Faculty of Economics, Chulalongkorn University |
| Publication Year | 2561 |
| Journal Title | Southeast Asian Journal of Economics |
| Journal Vol. | 6 |
| Journal No. | 1 |
| Page no. | 91-112 |
| Keyword | Diversification, ECM, fiscal policy, government expenditure,tax revenue |
| URL Website | http://www.econ.chula.ac.th/public/publication/journal/sajehome.php |
| Website title | Southeast Asian Journal of Economics |
| ISSN | 2465-5120 |
| Abstract | This paper analyses efficacy of fiscal policy for diversification inNigeria. In addition, it examines the average impact of economic growth onthe diversity index by employing time series data covering the period from1980 to 2015. It adopts the Phillips-Perron (PP) unit root test to ascertain orderof integration of the series whilst the possibility of long-run relationshipamong the variables is ascertained using the Wald Test. The Ordinary LeastSquares (OLS) estimation reveals a significantly positive relationship betweenthe index of diversification and each of petroleum profit tax, capital expenditure,and fiscal freedom in the country. Thus, it concludes that fiscal policy variablesare effective for driving diversification in Nigeria. It, however, suggests thatthe government should strengthen its strategy for collecting the petroleumprofit tax. Also, the government should direct capital spending to the provisionof infrastructural facilities to boost manufacturing exports. Finally, a strongand independent institution for fruitful diversification process is recommended |
