Fiscal policy sustainability in Nigeria: ARDL bounds testing technique
Dauda Gbolagade Adebisi and
Additional contact information
Dauda Gbolagade Adebisi: Department of Accounting and Finance, Bowen University, Iwo, Osun State, Nigeria
Gbadebo Salako: Department of Economics, Emmanuel Alayande College of Education, Oyo, Oyo State, Nigeria
Asian Journal of Empirical Research, 2020, vol. 10, issue 3, 74-80
This study investigates fiscal policy`s sustainability in Nigeria from 1961-2016, using annual data of public revenues and expenditure, all as a ratio of GDP. The study applies ARDL bounds testing cointegration technique to determine an equilibrium relationship between the variables. Also, Autoregressive Distributed Lag (ARDL) technique of data analysis is employed to examine the compliance of the government of Nigeria with the budget constraint equation. The results show no equilibrium occurs between public revenue and expenditure, indicating absence of sustainability in the government finances in Nigeria. It is expedient, therefore, that government expands the tax base, reduce tax rates and be cautious in her spending to avoid unproductive expenditure.
Keywords: Fiscal policy; Sustainability; Revenues; Error correction; Economy (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:asi:ajoerj:2020:p:74-80
Access Statistics for this article
Asian Journal of Empirical Research is currently edited by Kashif Imran ( Managing Editor)
More articles in Asian Journal of Empirical Research from Asian Economic and Social Society 2637 E Atlantic Blvd #43110 Pompano Beach, FL 33062, USA.
Bibliographic data for series maintained by Chan Hoi Yan ().