Dynamic Analysis of the Effect of Fiscal Deficit on Inflation in Nigeria
Journal Title: Academic Journal of Economic Studies - Year 2019, Vol 5, Issue 2
Abstract
The study is aimed at investigating the short-run and long-run dynamic effects of fiscal deficit on inflation in Nigeria. Autoregressive Distributed Lag Model (ARDL) was applied to time series data from 1970–2016 (of Nigeria). The result, of the estimation, reveals that fiscal deficit is inflationary during the short-run as well as the long-run of the period of study. Findings of the research are limited to Nigeria whose data were used, based on ARDL as the econometrics techniques applied, for a period 1970–2016. The fiscal spending of Nigerian government is one of the factors contributing to inflationary pressure in the country as seen in the findings of the research. The paper was able to prove empirically, the existence of the positive effect of fiscal deficit on inflation in Nigeria, using Nigerian data and also suggest for decision makers in the country to be cautious in terms of the way, the Nigerian government is financing its expenditure through borrowing and fiscal spending.
Authors and Affiliations
Ibrahim Abdulhamid Danlami, Mohamad Helmi Hidthiir, Sallahuddin Hassan
Keywords
Related Articles
- EP ID EP598411
- DOI -
- Views 85
- Downloads 0
Gross Domestic Product and its Components in India. Trends and Issues
In this paper focus on the trends of Indian growth in terms of Gross domestic Product and its components. And furthermore analyse the growth are accelerate or decelerate. This paper covers growth performance in India for...
An Analysis of Factors Affect the Export of Gayo Coffee in Bener Meriah Regency, Acheh, Indonesia
This is a research which is conducted to observe the effects of the export prices, exchange rates, and the total production of the Gayo coffee export volume in Bener Meriah regency. The purpose of this research is to det...
Estimate of Equilibrium Real Exchange Rate and Misalignment of Chinese Yuan Vis-a-Vis US Dollar
The paper examines the misalignment in equilibrium real exchange rate of Chinese Yuan against US dollar. The data covered the period of 1980-2014, it used Vector Autoregressive model, the variables are not stationary at...
The Impact of Economic Growth and Population on Co2 Emissions from Transport Sector. Azerbaijan Case
In this study, we have examined impacts of energy consumption, real GDP and population on the pollution from the automobile transport in Azerbaijan case. We employed annual time series data for the 1990-2014 time span. F...
The Influence of Strategic Alternatives on the Increasing Level Value of the Term Deposits
This article analyses the influence of the strategic alternative on the value level increase of the term deposits attracted from the Romanian’s population households, during the period 2012 – Q1/2015, depending on the ch...