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Growth and inflation effect of fiscal policy shocks: evidence from Nigeria

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Abstract

The study investigates the effect of fiscal policy shocks on economic growth and inflation in Nigeria for the period 1981 to 2015 by employing the Structural Vector Autoregression (SVAR) methodology. Findings of the SVAR model showed both public expenditure and revenue shocks as having a positive effect on economic growth with response to revenue shocks being more. Public expenditure and revenue shocks were found to exert a negative effect on inflation, with revenue shocks having a longer-lasting effect than public expenditure. Policy recommendations of the study include an overhaul of fiscal policy operations in Nigeria via strengthening and diversification of revenue base and also restructuring of public expenditure pattern by expending more on productive expenditure.
Original languageEnglish
Publication statusPublished - 10 May 2017
Externally publishedYes
Event3rd International Conference on Social Sciences and Law - Nile University Nigeria, Abuja, Nigeria
Duration: 10 May 201711 May 2017

Conference

Conference3rd International Conference on Social Sciences and Law
Country/TerritoryNigeria
CityAbuja
Period10/05/1711/05/17

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth

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