Does Fiscal Policy Matters For Economic Growth? An Empirical Assessment of the Nigerian Situation
Oriavwote, E. Victor; Samuel J. Eshenake

Abstract
This study has been to examine whether fiscal policy matters for the development process in Nigeria. The main objective of this study is to empirically investigate the impact of fiscal policy on the level of economic growth in Nigeria. The study covered the period between 1980 and 2013. The co integration technique with its implied ECM was used for the study. The result indicated that the three components of fiscal policy used in the study which includes petroleum profit tax, government expenditure and external debt had a positive and significant impact on the level of economic growth in Nigeria. An indication that if well managed, fiscal policy has the potentials of improving the level of economic growth in Nigeria. The study recommends fiscal prudence amongst others.

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