Analysis of Fiscal Deficit Sustainability in Nigerian Economy: An Error Correction Approach
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Keywords

Sustainability, Fiscal policy, Error correction, Constraint, Economy.

How to Cite

O. J, O. ., & O. T, A. . (2014). Analysis of Fiscal Deficit Sustainability in Nigerian Economy: An Error Correction Approach. Asian Economic and Financial Review, 4(2), 199–210. Retrieved from https://archive.aessweb.com/index.php/5002/article/view/1154

Abstract

The study investigates the sustainability of fiscal policy in Nigeria over the period of 1980-2010 to determine whether or not the government has violated intertemporal government budget constraint. Using error correction method of analysis, the study revealed that fiscal policy was weakly sustainable in the economy of Nigeria. This study therefore recommends that government should improve on her tax revenue generation and other source of income but limit her expenditure to growth enhancing projects.

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