Fiscal federalism and economic development in Nigeria: An auto-regressive distributed lag approach

Ewetan, O. O. and Matthew, Oluwatoyin and Babajide, A. A and Osabohien, Romanus and Urhie, Ese S (2020) Fiscal federalism and economic development in Nigeria: An auto-regressive distributed lag approach. Cogent Social Sciences, 6. pp. 1-13.

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Abstract

This study examines the impact of fiscal federalism on economic development in Nigeria for the period 1981–2017 using the auto-regressive distributed lag approach. The data for the study were sourced from various issues of Central Bank of Nigeria Statistical Bulletin and International Country Risk Guide. It was found that revenue decentralization with a coefficient of −2.15 significantly retarded economic development at 5%, while expenditure decentralization with a coefficient of 2.935 significantly increased economic development at 5%. The overall decentralization indicator, captured as simultaneity measure with a coefficient of 4.264 significantly increased economic development at 1%. From the empirical evidence, fiscal federalism will encourage economic development in Nigeria. These findings support and reinforce the need for greater decentralization of fiscal responsibilities to sub-national government. Also, government should enact legislations to improve bureaucratic quality, and implement appropriate security reforms to further strengthen law and order to ensure economic development in Nigeria.

Item Type:	Article
Uncontrolled Keywords:	development; autoregressive distributed lag method; fiscal decentralization; fiscal federalism; Nigeria
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	Mrs Hannah Akinwumi
Date Deposited:	29 Mar 2022 10:29
Last Modified:	29 Mar 2022 10:29
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/15769

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