Trivariate analysis of oil revenue, government spending and economic growth in Nigeria

2018 ◽  
Vol 42 (2) ◽  
pp. 107-122
Author(s):  
Ismail O. Fasanya ◽  
Abosede E. Ogundare
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Oil Revenue ◽  
Trivariate Analysis

Forming Sources of Long-run Growth: How to Understand Them?

2014 ◽  
pp. 4-20 ◽  
Author(s):  
G. Idrisov ◽  
S. Sinelnikov-Murylev
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Policy ◽  
Business Cycle ◽  
Capital Markets ◽  
Productivity Growth ◽  
Government Spending ◽  
Long Run ◽  
Accelerate Growth ◽  
Budget Institutions

The paper analyzes the inconsequence and problems of Russian economic policy to accelerate economic growth. The authors consider three components of growth rate (potential, Russian business cycle and world business cycle components) and conclude that in order to pursue an effective economic policy to accelerate growth, it has to be addressed to the potential (long-run) growth component. The main ingredients of this policy are government spending restructuring and budget institutions reform, labor and capital markets reforms, productivity growth.

Government spending shocks and economic growth: additional evidence from cyclical behavior of fiscal policy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olumide Olusegun Olaoye ◽  
Ukafor Ukafor Okorie ◽  
Oluwatosin Odunayo Eluwole ◽  
Mahmood Butt Fawwad
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
Government Spending ◽  
Generalized Method Of Moments ◽  
The State ◽  
Fiscal Policies ◽  
Asymmetric Effect ◽  
Content Type ◽  
Spending Shocks ◽  
The Business Cycle

PurposeThis study examines the asymmetric effect of government spending on economic growth in Nigeria over the period 1980–2017. Specifically, this study investigates whether the response of economic growth to government spending shocks differs according to the nature of shocks on them. In addition, the authors examine whether the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Design/methodology/approachThe study adopts the linear fiscal reaction function in addition to the nonlinear regression model of Hatemi-J (2011, 2012), Granger and Yoon (2002), which allows us to separate negative shocks from positive shocks to government spending. Similarly, the authors adopt the generalized method of moments (GMM) techniques of Hansen (1982) to account for simultaneity and endogeneity problems inherent in dynamic model.FindingsThe authors’ findings reveal that there is evidence of asymmetry in the government spending–economic growth nexus in Nigeria over the period of study. Specifically, the authors find that the response of economic growth to government spending shocks differs according to the nature of shocks on them. More specifically, the study established that the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Originality/valueUnlike the traditional method of modeling asymmetry, which adopts the simple inclusion of a squared government spending term or by the inclusion of a cubic government spending term, the model adopted in this study allows us to model shocks and show how the responses of economic growth to government expenditure differ according to the nature of shocks on them.

scholarly journals Government Stimulus Policy Effects to Foster Indonesia's Economic Growth: Evidence from Seventeen Years' Experience

2021 ◽  
Vol 10 (1) ◽  
pp. 63-76
Author(s):  
Agus Sriyanto ◽  
Sri Murwani ◽  
Eleonora Sofilda
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Government Expenditure ◽  
Government Debt ◽  
Influential Factor ◽  
Bounds Testing ◽  
Policy Effects ◽  
Stimulus Effects ◽  
Positive Effect

We study the budget stimulus effects and government spending to help foster the recovery of Indonesia's current economic growth that was hit by the monetary crisis 1997 and 2008. Using government spending allocation policies through capital expenditures, infrastructure expenditures, financing through government debt, private debts, and increased productivity through export and import activities. This research provides to proves the extent to which macroeconomic variables could promote Indonesia's economic growth due to the crisis—using quantitative analysis of time series in the analysis of cointegration autoregressive distribution lag and bounds testing cointegration starting from 2001 Q4 to 2018q4 data. We can prove that in the short term, the most influential factor in economic growth is the first lag of the GDP growth itself; The first lag of exports, and the first lag of government spending and imports. However, some factors still negatively affect corruption control, government effectiveness, and government debt. While in the long term, government expenditure and imports still have a positive effect, but corruption control is still hurt GDP.JEL Classification: G18, O47How to Cite:Sriyanto, A., Murwani, S., & Sofilda, E. (2021). Government Stimulus Policy Effects to Foster Indonesia's Economic Growth: Evidence from Seventeen Years' Experience. Signifikan: Jurnal Ilmu Ekonomi, 10(1), 63-76. https://doi.org/10.15408/sjie.v10i1.15480.

scholarly journals Government Spending, Taxes, and Economic Growth

1994 ◽  
Vol 94 (92) ◽  
pp. 1 ◽  
Author(s):  
Paul Cashin ◽  
Keyword(s):  
Economic Growth ◽  
Government Spending

scholarly journals EFECT OF FOREIGN EXCHANGE RATE FLUCTUATIONS ON NIGERIAN ECONOMY

10.26458/1814 ◽  
2018 ◽  
Vol 18 (1) ◽  
pp. 105-122
Author(s):  
Lawrence Olisaemeka UFOEZE ◽  
Camilus OKUMA, N. ◽  
Clem NWAKOBY ◽  
Udoka Bernard Alajekwu
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Money Supply ◽  
Significant Positive Effect ◽  
Exchange Rate Fluctuations ◽  
Fixed Exchange Rate ◽  
Oil Revenue ◽  
Time Period ◽  
Negative Effect ◽  
Positive Effect

This study investigated the effect of exchange rate fluctuations on Nigerian economy. The fixed and floating exchange eras were compared to know the exchange rate system in which the economy has fairly better. The time period covered was 1970 to 2012. The study employed the ordinary least square (OLS) multiple regression technique for the analysis. The coefficient of determination (R2), F-test, t-test, beta and Durbin-Watson were used in the interpretation of the results. The resulted revealed that about 85% of the changes in macroeconomic indicators are explained in the fixed exchange era. In the floating exchange era, 99% was explained while the whole periods has 73% explanatory power, hence the floating exchange era (1986 to date) is more effective in explaining economic trend in Nigeria. Also, exchange rate has significant positive effect on GDP during the fixed exchange rate era and negative effect the eras floating and all-time; inflation has insignificant negative effect on GDP during the fixed exchange era; significant effect in floating era and significant negative effect in the all-time period; money supply has insignificant negative effect GDP in fixed exchange era; and significant positive effect during the floating and all-time period; and oil revenue has significant positive effect on the GDP in all the exchange rate regimes (floating, fixed and all-time) in Nigeria.  The study thus conclude that exchange rate movement is a good indicator for monitoring Nigerian economic growth. So far exchange rate has always been a key economic indicator for Nigeria. The floating exchange period has outperformed the fixed exchange rate in terms of contribution inflation, money supply and oil revenue to economic growth. This indicate that the floating exchange rate has been a better economic regime for sustainable economic growth in Nigeria. From the findings, it is evident that oil revenue has positive effect in Nigeria and has remained the mainstay of the economy. It is thus recommended among other things that a positive exchange rate stock should be monitored regularly, so as not to allow those that find exchange rate as an avenue of investment like banks and public carry out their business, which is more devastating to the economy. 

scholarly journals A RELATIVE ASSESSMENT OF THE CONTRIBUTIONS OF AGRICULTURE, OIL AND NON-OIL TAX REVENUES TO NIGERIA’S ECONOMIC EXPANSION

10.26458/1927 ◽  
2019 ◽  
Vol 19 (2) ◽  
pp. 139-152
Author(s):  
Cordelia Onyinyechi OMODERO
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Positive Influence ◽  
Tax Revenue ◽  
Foreign Direct Investments ◽  
Economic Expansion ◽  
Oil Revenue ◽  
Significant Negative Impact ◽  
Using Data

The decline in oil prices globally has led to diversification of economy in most oil enriched countries.  In Nigeria, more attention is given to agriculture and non-tax revenue sources to ensure that the country overcomes a mono-economy syndrome which has affected the nation in the past.  This study assesses the contributions of agriculture, oil and non-oil tax revenue to economic expansion in Nigeria using data that cover a period from 1981 to 2017.  The regression results indicate that oil revenue has a significant negative impact on economic growth which is represented by gross domestic product.  On the contrary, the study finds evidence that agriculture and non-oil tax revenue have a robust significant and positive influence on economic growth.  Therefore, the study suggests that tax administration in Nigeria should be more business-growth conscious and that agriculture should be given a boost by creating an enabling environment that could attract foreign direct investments in the agricultural sector.  The study also recommends that oil revenues should be utilized for reinvestments into other sectors of the economy. Keywords:  Oil revenue, non-oil tax revenue, agriculture, economic growth, Nigeria.JEL Classifications: H27, H24, H25, N5, O4  

scholarly journals ANALISIS DETERMINASI PERTUMBUHAN EKONOMI PROVINSI JAMBI

2018 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Ali Fahmi
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Capital Investment ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Least Square ◽  
Series Data ◽  
Ordinary Least Square ◽  
Investment Capital

This research aims to analyze the effect of government spending, investment of foreign capital investment, capital investment In Land and labor against growth of Jambi province during the 2004-2015. This research using Time Series data with regression analysis "Ordinary Least Square (OLS) wear EViews 8.  The findings from this research indicate that Labor become the most variable gives a positive impact against the next economic growth, government spending and investment, while investing PMDN PMA gives negative impact on The Economic Growth Of The Province Of Jambi. PMA investment posit no impact and no signikan against economic growth this is not prevalent, but it is possible the investment PMA in Jambi province is relatively small and still no impact in the absorption of the local Workforce. Menyikapai is an effort to boost the Economic growth of the Province of Jambi then needed a special business development policies should be directed at the activities that are labor-intensive to absorb labor as much as possible. Keywords: economic growth, government spending, PMA, the PMDN, and labor.

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