FISCAL BALANCE AND SUSTAINABLE ECONOMIC DEVELOPMENT IN NIGERIA
This study analyzed the effects of fiscal balance on sustainable economic development in Nigeria from 1981 to 2022. Autoregressive Distributed Lag (ARDL) model was employed in estimating the variables. The ARDL results indicated that the relationship between fiscal balance and sustainable economic...
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| Format: | Article |
| Language: | English |
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Federal University Wukari
2023-07-01
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| Series: | International Studies Journal |
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| Online Access: | https://wissjournals.com.ng/index.php/wiss/article/view/311 |
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| author | Okwuchukwu Odili Okoro Kelechi Okoro Nwannediya Faith Oti-Ibiam |
| author_facet | Okwuchukwu Odili Okoro Kelechi Okoro Nwannediya Faith Oti-Ibiam |
| author_sort | Okwuchukwu Odili |
| collection | DOAJ |
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This study analyzed the effects of fiscal balance on sustainable economic development in Nigeria from 1981 to 2022. Autoregressive Distributed Lag (ARDL) model was employed in estimating the variables. The ARDL results indicated that the relationship between fiscal balance and sustainable economic development followed a long-run path. The study found that fiscal balance to GDP ratio, external debt to export ratio, and public debt service to revenue ratio had negative impact on growth rate of real GDP per capita (GDPgr). Total debt stock to GDP ratio had positive effect on GDPgr. Domestic debt to domestic investments ratio and recurrent expenditure to GDP ratio exerted negative and non-significant effect on GDPgr. Debt for gross fixed capital formation as a percentage of GDP and trade openness exerted positive and significant effect on GDPgr. The study recommended that the government should focus on viable capital investments that have the potential to generate revenue that can service public debt in order not to create debt that are not sustainable. Government should take proactive measures to ensure that public debt is employed in key productive sectors of the economy to boost domestic production and enhance export receipts in foreign currency capable of repaying the externally borrowed funds. There is need for government to reduce recurrent expenditures since it does not lead directly to revenue generation, capital formation, savings and investment in such manner that it would increase economic assets, boost production, and promote sustainable economic development.
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| format | Article |
| id | doaj-art-bfb790445a764c498c4f876b9e4c523c |
| institution | Kabale University |
| issn | 2756-4649 |
| language | English |
| publishDate | 2023-07-01 |
| publisher | Federal University Wukari |
| record_format | Article |
| series | International Studies Journal |
| spelling | doaj-art-bfb790445a764c498c4f876b9e4c523c2025-02-10T10:01:08ZengFederal University WukariInternational Studies Journal2756-46492023-07-0171FISCAL BALANCE AND SUSTAINABLE ECONOMIC DEVELOPMENT IN NIGERIAOkwuchukwu Odili0Okoro Kelechi Okoro1Nwannediya Faith Oti-Ibiam2Michael Okpara University of Agriculture, UmudikeMichael Okpara University of Agriculture, Umudike, NigeriaMichael Okpara University of Agriculture, Umudike, Nigeria This study analyzed the effects of fiscal balance on sustainable economic development in Nigeria from 1981 to 2022. Autoregressive Distributed Lag (ARDL) model was employed in estimating the variables. The ARDL results indicated that the relationship between fiscal balance and sustainable economic development followed a long-run path. The study found that fiscal balance to GDP ratio, external debt to export ratio, and public debt service to revenue ratio had negative impact on growth rate of real GDP per capita (GDPgr). Total debt stock to GDP ratio had positive effect on GDPgr. Domestic debt to domestic investments ratio and recurrent expenditure to GDP ratio exerted negative and non-significant effect on GDPgr. Debt for gross fixed capital formation as a percentage of GDP and trade openness exerted positive and significant effect on GDPgr. The study recommended that the government should focus on viable capital investments that have the potential to generate revenue that can service public debt in order not to create debt that are not sustainable. Government should take proactive measures to ensure that public debt is employed in key productive sectors of the economy to boost domestic production and enhance export receipts in foreign currency capable of repaying the externally borrowed funds. There is need for government to reduce recurrent expenditures since it does not lead directly to revenue generation, capital formation, savings and investment in such manner that it would increase economic assets, boost production, and promote sustainable economic development. https://wissjournals.com.ng/index.php/wiss/article/view/311Fiscal balancedebt profiledebt servicesustainable economic development |
| spellingShingle | Okwuchukwu Odili Okoro Kelechi Okoro Nwannediya Faith Oti-Ibiam FISCAL BALANCE AND SUSTAINABLE ECONOMIC DEVELOPMENT IN NIGERIA International Studies Journal Fiscal balance debt profile debt service sustainable economic development |
| title | FISCAL BALANCE AND SUSTAINABLE ECONOMIC DEVELOPMENT IN NIGERIA |
| title_full | FISCAL BALANCE AND SUSTAINABLE ECONOMIC DEVELOPMENT IN NIGERIA |
| title_fullStr | FISCAL BALANCE AND SUSTAINABLE ECONOMIC DEVELOPMENT IN NIGERIA |
| title_full_unstemmed | FISCAL BALANCE AND SUSTAINABLE ECONOMIC DEVELOPMENT IN NIGERIA |
| title_short | FISCAL BALANCE AND SUSTAINABLE ECONOMIC DEVELOPMENT IN NIGERIA |
| title_sort | fiscal balance and sustainable economic development in nigeria |
| topic | Fiscal balance debt profile debt service sustainable economic development |
| url | https://wissjournals.com.ng/index.php/wiss/article/view/311 |
| work_keys_str_mv | AT okwuchukwuodili fiscalbalanceandsustainableeconomicdevelopmentinnigeria AT okorokelechiokoro fiscalbalanceandsustainableeconomicdevelopmentinnigeria AT nwannediyafaithotiibiam fiscalbalanceandsustainableeconomicdevelopmentinnigeria |