Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/246604 
Year of Publication: 
2018
Citation: 
[Journal:] Future Business Journal [ISSN:] 2314-7210 [Volume:] 4 [Issue:] 2 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2018 [Pages:] 246-260
Publisher: 
Elsevier, Amsterdam
Abstract: 
This paper investigated the dynamic relationships among non-oil revenue, government spending and economic growth in Nigeria for the period of 1981 to 2015. After establishing a long run relationship among the variables, the error correction model, impulse responses were estimated as well as the granger causality test among the variables. The results of the short run and long run showed negative effects of government spending on economic growth while non-oil revenue showed positive effect on economic growth. We also found non-oil revenue to have negative shocks on economic growth while the government spending shock was positive. The Granger causality revealed that government spending granger caused both non-oil revenue and economic growth supporting the Keynesian and spend-tax hypothesis in Nigeria over the period of the study. We recommend that the economy of Nigeria should be diversified into non-oil sector rather than relying solely on revenue from oil export.
Subjects: 
Cointegration
Government spending
Impulse response
Nigeria
Non-oil revenue
Short run and long run
JEL: 
O23
O47
Q28
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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