Budget Deficit and Economic Performance in Nigeria
Journal Title: Saudi Journal of Business and Management Studies - Year 2017, Vol 2, Issue 3
Abstract
Abstract: Since the past year budget deficit is corrected in the current year, this study seek to examine the lag effect of previous year’s budget deficit on performance of the Nigeria economy in the contemporary year using VAR estimation between the periods 1981 to 2015. From the foregoing statistical output, findings established that Budget deficit significantly stimulate economic performance. The output of the granger causality test shows that budget deficit statistically granger cause economic performance and viz versa while the result of the multiple regression of the ordinary least square report a significant but negative relationship to economic performance. The negative response of budget deficit to economic performance could be attributed to moral hazard, mismanagement of fund and financial indiscipline which prevent the country from enjoying the sustainable level of expected growth overtime. The output of the VAR estimate established that the lag value of federal government budget deficit has contributed to performance of the economy in the current year although the contributive quadrant is not been felt to a reasonable extent. This empirical findings support the Keynesian postulation of significant relationship between budget deficit and economic performance. Prior to our findings, study recommends that Policy makers should ensure effective utilisation of borrowed fund and maintain a sporadic evaluation and supervision of such project in which borrowed fund are channelled into in order to achieve a profitable returns which will help in servicing of such debt and also stimulate economic performance. Keywords: Budget Deficit, Vector Auto Regression, Economic Performance
Authors and Affiliations
Momodu Ayodele A, Monogbe Tunde G
Keywords
Related Articles
- EP ID EP394766
- DOI -
- Views 146
- Downloads 0
Attitude toward Using m-Commerce: The Analysis of Perceived Usefulness, Perceived Ease of Use, and Perceived Trust: Case Study in Ikens Wholesale Trade, Jakarta – Indonesia
Abstract:This research aims to analyze the partial effect of Perceived Usefulness on Attitude toward Using, Perceived Ease of Use on Attitude toward Using, Perceived Trust on Attitude toward Using and the simultaneous in...
HCD Practices and Its Impact on Sustainable Growth:“A Study on Selected Banks in Ghana.”
AbstractThe study introduces HCD Practices as the main alternative for interventions that improve the efficacy of individuals working in the Ghanaian Banking Industry. HCD Practices are lasting practices such as training...
Tiatr: A New Form of Entrepreneurship in Goa – Problems and Prospects
Abstract: Tiatr, which has a history of more than 100 years, is a type of musical theatre popular in the state of Goa on the West coast of India as well as in Mumbai and with expatriate communities in the Middle East, Lo...
Measuring the Impact of POWER! Programme
Abstract: Despite the vast research in financial literacy and financial education, little is known about the effectiveness of the education programme that was conducted to increase the financial literacy among Malaysian....
Does Regional Financial Information System Have an Impact on the Quality of Financial Statement?
Abstract:The purpose of this study is to determine the impact of regional financial information systems on the quality of financial statements. The object of the research is 53 users of local government financial informa...