Fiscal Sustainability and Demographic Transition in Nigeria

Saheed Olayiwola, Uche Abamba Osakede and Francis O. Adeyemi

African Journal of Economic Review, 2023, vol. 12, issue 01

Abstract: This study investigates the impacts of demographic changes on fiscal sustainability in Nigeria. The study employed the Autoregressive Distributed Lag model with times series data from 1980-2021. It was found that old-age and young-age dependency directly impact government balance in the short-run and long-run. Health and education expenditures have negative effects on government balance. There is an increased government debt in a developing old-age and young-age economy. It was concluded that the demography transition has a comprehensive effect on fiscal sustainability; hence government needs adequate reviews of public health spending and reduces unnecessary expenses to maintain fiscal balance in Nigeria.

Keywords: Political Economy; Public Economics (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ags:afjecr:340556

DOI: 10.22004/ag.econ.340556

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