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Assessment of Determinants of Fiscal Policy in Nigeria 1980-2014

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– Assessment of Determinants of Fiscal Policy in Nigeria 1980-2014 –

Download Assessment of Determinants of Fiscal Policy in Nigeria 1980-2014. Economics students who are writing their projects can get this material to aid their research work.

Abstract

This study examined the determinants of fiscal policy in Nigeria (1980-2014). To do this, it reviewed government expenditure as a determinant of fiscal policy in Nigeria.

The study adopted Ordinary Least Squared Method in its analysis using data from the Central bank of Nigeria statistical bulletin. This study made use of secondary data to assess the determinants of fiscal policy in Nigeria.

It reviewed the Keynesian theory of fiscal policy and the classical view of government expenditure. It also reviewed the Peacock-Wiseman theory and Wagner’s theory.

In this study, the descriptive statistics of the variables indicate that all the variables, GOVEXP, GDP, LABFORCE, REVENUE, POPU, INVEST, TRANSFER and INF have positive mean values with 35 observations.

The standard deviation showed that the highest standard deviation of (9794981) is recorded by the GDP while the least standard deviation of (0.231467) is recorded by INVEST.

Introduction

Fiscal policy is important to the growth of any economy because government’s power to tax and to spend will affect the disposable income of citizens and corporations, including the general business climate.

It has become a vital tool in promoting growth and development of a country.

It is also an important part which is used in developing economies by government. The word “Fiscal Policy” has always been associated with the use of public expenditure and tax to control the state of economic activities.

Fiscal policy is associated with government deliberate actions in tax levying and money spending so as to influence macro economic variables in the right directions.

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