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The Causal Relationship Between Government Spending and Revenue in an Oil-Dependent Economy: The Case of Nigeria

Omo Aregbeyen and Taofik Ibrahim

The IUP Journal of Public Finance, 2012, vol. X, issue 1, 6-21

Abstract: This paper applies the technique of Granger causality to determine the relationship between total government expenditure and revenue in Nigeria for the period 1970-2006. The findings of the study generally support the existence of bidirectional causality between government spending and tax revenue, suggesting that the fiscal synchronization hypothesis is confirmed for Nigeria.

Date: 2012
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Handle: RePEc:icf:icfjpf:v:10:y:2012:i:1:p:6-21