Authors :
Salihu Zummo Hayatudeen; Shehu Jibir
Volume/Issue :
Volume 8 - 2023, Issue 10 - October
Google Scholar :
https://tinyurl.com/s5xe42jj
Scribd :
https://tinyurl.com/bdz9e8e4
DOI :
https://doi.org/10.5281/zenodo.10282726
Abstract :
The paper sets out to analyse the impact of
fiscal policy on unemployment in Nigeria for the period
of 1986 –2022, using secondary datasourced from
Central Bank of Nigeria Statistical Bulletin and National
Bureau of Statistics Annual Report. The study adopted
ARDL model and Error Correction Model to achieve the
objectives. The model diagnostic checking included;
heteroskedasticity test, autocorrelation, normality test
and stability test were established. The results depicted
that recurrent expenditure has positive relationship with
unemployment rate and it is statistically significant in
the current period. But in period oneand two, recurrent
expenditure possessed negative and significant effect on
unemployment in the short run. While, recurrent
expenditure has positive and significant impact on
unemployment rate in the long run. Capital expenditure
revealed negative but insignificant effect on
unemployment in the short run, though in the long run,
capital expenditure has positive and insignificant impact
on unemployment. Government revenue has negative
and significant impact on unemployment. And, in the
long run, government revenue has a negative and
significant impact on unemployment in Nigeria. Public
debt servicing has a negative and significant effect on
unemployment in Nigeria. Based on these results, this
study suggests that government should diversify and
invest in the non –oil sector and borrowed funds should
be used for productive purpose as this has the potential
of increasing employment. Also, government should
properly handle or manage recurrent expenditure,
capital expenditure, government revenue and public
debt servicing in order to control unemployment in a
way that would ensure economic development in Nigeria.
Keywords :
Recurrent Expenditure, Capital Expenditure, Government Expenditure, Public Debt Servicing, Unemployment.
The paper sets out to analyse the impact of
fiscal policy on unemployment in Nigeria for the period
of 1986 –2022, using secondary datasourced from
Central Bank of Nigeria Statistical Bulletin and National
Bureau of Statistics Annual Report. The study adopted
ARDL model and Error Correction Model to achieve the
objectives. The model diagnostic checking included;
heteroskedasticity test, autocorrelation, normality test
and stability test were established. The results depicted
that recurrent expenditure has positive relationship with
unemployment rate and it is statistically significant in
the current period. But in period oneand two, recurrent
expenditure possessed negative and significant effect on
unemployment in the short run. While, recurrent
expenditure has positive and significant impact on
unemployment rate in the long run. Capital expenditure
revealed negative but insignificant effect on
unemployment in the short run, though in the long run,
capital expenditure has positive and insignificant impact
on unemployment. Government revenue has negative
and significant impact on unemployment. And, in the
long run, government revenue has a negative and
significant impact on unemployment in Nigeria. Public
debt servicing has a negative and significant effect on
unemployment in Nigeria. Based on these results, this
study suggests that government should diversify and
invest in the non –oil sector and borrowed funds should
be used for productive purpose as this has the potential
of increasing employment. Also, government should
properly handle or manage recurrent expenditure,
capital expenditure, government revenue and public
debt servicing in order to control unemployment in a
way that would ensure economic development in Nigeria.
Keywords :
Recurrent Expenditure, Capital Expenditure, Government Expenditure, Public Debt Servicing, Unemployment.
