International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

Fiscal Policy and Economic Growth Relationship in Nigeria
Sikiru Jimoh Babalola, Umaru Aminu

Abstract
The study investigates the impact of fiscal policy on economic growth in Nigeria. Annual data covering 1977 – 2009 were utilized. Unit roots of the series were examined using the Augmented Dickey-Fuller technique after which the cointegration test was conducted using the Engle-Granger Approach. Error-correction models were estimated to take care of short-run dynamics. Over all, the results indicate that productive expenditure positively impacted on economic growth during the period of coverage and a long-run relationship exists between them as confirmed by the cointegration test. The paper recommends improvement in government expenditure on health, education and economic services, as components of productive expenditure, to boost economic growth.

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