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An Evaluation of Fiscal Policy in Promoting Savings, Resource Mobilization and Investment in Nigeria

Olayiwola, Kolawole and Osabuohien, E. S. C. (2010) An Evaluation of Fiscal Policy in Promoting Savings, Resource Mobilization and Investment in Nigeria. The Journal of Banking and Finance, 10 (1). pp. 26-45. ISSN 119-4359

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Abstract

The study seeks to evaluate the effectiveness of fiscal policy in enhancing savings, resource mobilisation and investment in the Nigerian capital market this is done with the objective of identifyng the extent to which fiscal policy-related issues have contributed to the underperformance of savings mobilisation and investment in Nigeria. A descriptive statistical approach (trend analysis) was adopted to evaluate how the economy performed under different fiscal policy regimes, and from the analysis, 'fiscal hydrocephalus' was observed. In addition, there were indications of predominant idle savings, as well as financial crowding-out. The study, therefore, recommends some policy measures to reform public enterprises and, in particular, limit cash flow problems in order to encourage release of available domestic credits to the private sector. The need for a competitive domestic economy was also recognised to be crucial for encouraging savings, because no meaningful savings and investment can take place in an uncertain environment.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HJ Public Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 25 Mar 2015 12:02
Last Modified: 25 Mar 2015 12:02
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/4231

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