Fiscal policy and current account in an oil-rich economy: the case of Nigeria

Akanbi, Olusegun Ayodele

doi:10.1007/s00181-014-0838-2

Cited by 6 publications

(3 citation statements)

References 30 publications

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“…With a structural dynamic factor model, they are able to reproduce four features of small commodity-exporting economies: (i) external balance effect (current account balance positively correlated with the terms of trade and real price of exported commodity), 1 Recent examples of the effect of oil price shocks on oil exporting economies are those of El Anshasy and Bradley (2012) and Allegret and Benkhodja (2015). Akanbi (2015) argues that the oil exporting country, Nigeria, relies a great deal on the oil-revenue. 2 For oil price shocks this has been documented by e.g.…”

Section: Introductionmentioning

confidence: 99%

The impact of commodity price shocks in a copper-rich economy: the case of Chile

Pedersen

2018

Empir Econ

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The present paper analyzes how shocks to the copper price affect the economy of Chile, the world's largest producer of this metal. Chile is an interesting case study, it being an emerging commodity producing economy that has a fiscal rule, which explicitly takes into account the expected future copper price, and has adopted an inflation targeting monetary policy with a fully floating exchange rate. The empirical analysis consists in estimating structural vector autoregressive models where the shocks are identified by sign restrictions in order to make the distinctions of those caused by increasing world demand, decreasing copper supply, and specific copper demand, e.g., speculation in future price increases. Positive copper price shocks, independently of the source, result in an appreciated currency, whereas the effects on the other macroeconomic variables do depend on the source of the shock. While demand shocks affect the Chilean gross domestic product positively, this is not the case when the copper price increases because of a supply-side event or a specific copper demand. Particularly, the activity in the mining sector is affected, while the non-mining sector expands only when the shock is caused by increasing world demand. One explanation could be the stabilizing effect of the fiscal rule. The impacts on inflation and the interest rate are correlated because of the inflation targeting monetary policy.

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Section: Introductionmentioning

confidence: 99%

The impact of commodity price shocks in a copper-rich economy: the case of Chile

Pedersen

2018

Empir Econ

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“…The pattern of government expenditure in Nigeria over the years has to a large extent been driven by crude oil endowment, which is reflected in the generated revenue (Akanbi, 2014). This study aims to establish the determinants of government expenditure, by further disaggregating expenditure into two components: capital and recurrent expenditure.…”

Section: Introductionmentioning

confidence: 99%

Government Expenditure in Nigeria: Determinants and Trends

Akanbi¹

2014

MJSS

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“…Banday and Aneja (2019) investigate budget deficit and current account deficit for the Chinese economy between the years 1985-2016. Akanbi (2015) investigates the relationship between Nigeria's fiscal policies and current account. Kayhan, et al (2013) research the causality between trade deficit (including export variables) and the Turkish government expenditures.…”

Section: Literaturementioning

confidence: 99%

Effects of Fiscal Rules and Political Framework: Evidence from COVID-19 Crisis

2022

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The COVID-19-Crisis impacted economic growth globally, opening up the need for public spending. These conditions put national fiscal authorities under pressure, challenging them primarily to remedy the economic downturn, and secondly to balance fiscal resources. We analyze whether alternative institutional frameworks, fiscal rules and political regimes across numerous countries can explain different economic outcomes following the COVID-19-Crisis. The empirical results show that growth in GDP affects gross debt negatively, government revenue positively, and national savings positively for all subsets, except for the federal subset. The effect on government revenue for fiscal subset is higher than for no fiscal rule. In almost all the subgroup models, it can be observed that the COVID-19 period has a positive effect on gross government debt and a negative on government revenue, except for federal countries and countries with a fiscal rule and a majority government. For all subsets the effect of the COVID-19 variable is not significant in the national savings regression models. For the countries in the federal subset the explanatory variables are unable to reduce the government debt. Conclusively, we could propose adaptive fiscal rules, which motivate fiscal authorities to maintain fiscal balance in long debt and in the annual budget.

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Fiscal policy and current account in an oil-rich economy: the case of Nigeria

Cited by 6 publications

References 30 publications

The impact of commodity price shocks in a copper-rich economy: the case of Chile

The impact of commodity price shocks in a copper-rich economy: the case of Chile

Government Expenditure in Nigeria: Determinants and Trends

Effects of Fiscal Rules and Political Framework: Evidence from COVID-19 Crisis

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