Abstract: The paper analyzed fiscal policy shock and Nigerian economic growth from 1983 to 2021. The investigation was longitudinal. Government expenditure, oil revenue, Government debt, and budget deficit were independent variables, while industrial sector GDP contribution was a proxy for industrial performance. Central Bank of Nigeria Statistical Bulletin, 2019 provided these variables' data. Descriptive statistics, Augmented Dickey Fuller unit root test, Johansen Cointegration test, and Error Correction Model are used to analyze data (ECM). All variables were regularly distributed, according to descriptive statistics. All study variables were stationary at first difference, according to Augmented Dickey-Fuller (ADF) test statistics. Johansen Cointegration test shows long-term link between variables. Estimations show that government spending positively affects industry performance. Oil revenue had a little positive association with Nigeria's industrial performance, whereas government debt and budget deficit had a negative relationship. The study concludes fiscal policy shock affects Nigeria's industrial performance. The research advises that the government diversify the nation's economic base and focus public expenditures on the productive sector to create more jobs for its citizens. Boost domestic income generation and execute fiscal changes to decrease public debt and deficit financing to a sustainable level, while ensuring borrowed funds are allocated to support growth through productive and self-liquidating investments in the main sectors of the economy.
Keywords: Fiscal Policy, Economic Growth, Policy Shock, productive sector, RGDP.
Title: Fiscal Policy Shock and Nigerian economic growth from 1983 to 2021
Author: Dr. Osuji, C.C, Oyedele K.S.
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Vol. 10, Issue 3, July 2022 - September 2022
Page No: 371-380
Research Publish Journals
Website: www.researchpublish.com
Published Date: 30-August-2022
