Inflation Dynamics and Fiscal Deficit in Nigeria: Examination of Causal Relationship

Odim, Orji Uka; Ngozi, Onyeze Clementina; Lawrence, Edeh

doi:10.9790/5933-0527986

Cited by 3 publications

(1 citation statement)

References 5 publications

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“…This result is expected because high inflation raises spending. This result is line with the findings of (Saba, 2015;Orji, Onyeze, & Edeh, 2014;Baradaran, Asgharpur, Panahi, Kazerooni, & Alireza, 2017;and Lis & Nickel, 2009) for developing, OECD and EU countries.…”

Section: Results and Analysissupporting

confidence: 92%

Impact of Climate Change on Budget Balance: Implications for Fiscal Policy in the ECOWAS Region

Yahaya¹,

Nkwatoh²,

Jajere³

2021

IJEF

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The budget deficits of the Economic Community of West African States (ECOWAS) have been widening over the years. This study investigated the impact of climate change on budget balance and projected its implication for fiscal policy in ECOWAS countries. The two-step dynamic GMM method was applied for a balanced panel data of 14 countries from 2008 to 2018. The study found that rainfall is the only climate variable that increases budget deficits. Other macroeconomic variables: debt to GDP ratio and inflation were also responsible for the widening budget deficits. A major policy implication of this finding is that extreme and unpredictable rainfalls will distort the fiscal balance of ECOWAS countries by either reducing the revenue generation outlets or by raising expenditures. This will lead to more borrowing that will further widen the existing budget deficits through debt servicing, hence, making the respective governments to pay less attention on other sectors of the economy. Thus, ECOWAS countries need to expand their revenue generation sources either by creating an enabling environment for more businesses and investments to strive or by engaging in more foreign direct investment (FDI).

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Section: Results and Analysissupporting

confidence: 92%

Impact of Climate Change on Budget Balance: Implications for Fiscal Policy in the ECOWAS Region

Yahaya¹,

Nkwatoh²,

Jajere³

2021

IJEF

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Türkiye'de Kamu Kesimi Bütçe Açıkları ve Enflasyon İlişkisinin ARDL Sınır Testi Yöntemi ile İncelenmesi

Atgür

2021

Cumhuriyet Üniversitesi İktisadi Ve İdari Bilimler Dergisi

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Maliye politikası, para politikası ile birlikte makroekonomik istikrarın sağlanması ve sürdürülmesi açısından ekonomide önemli bir role sahip bulunmaktadır. Dolayısıyla, bu politika bileşenlerinin etkin bir biçimde kullanılabilmesi önem arzetmektedir. Bu çalışma, Türkiye’de kamu kesimi bütçe açıklarının enflasyon üzerindeki etkilerini uzun dönem için incelemeyi amaçlamıştır. Bu kapsamda, 2006-2019 dönemi için üçer aylık veriler kullanılarak ARDL sınır testi uygulanmıştır. ARDL sınır testi sonuçları, Türkiye’de kamu kesimi bütçe açıklarının enflasyon üzerinde uzun dönemde etkili olduğuna işaret etmektedir. Bu sonuç, teorik beklentiler ile uyumlu olup, Türkiye’de fiyat istikrarının sağlanmasında ve sürdürülmesinde maliye politikası araçlarının etkili olduğunu ve bu politika araçlarının etkin bir biçimde kullanılması gerektiğini göstermektedir.

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Long-Run and Short-Run Relationship between Budget Deficits and Inflation Rate in Nigeria

M.A.¹,

L.O.²,

R.O.³

et al. 2022

African Journal of Economics and Sustainable Development

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This study examines the dynamic relationship between budget deficit (BD) and inflation rate (INF) in Nigeria using secondary data extracted from the CBN statistical bulletin. Control variables included are real gross domestic product (RGDP), real interest rate (INTR), exchange rate (EXCHR) and private investment (INV). After obtaining a mixture of I(0) and I(1) variables from the unit root test, the study conducted a co-integration test using the ARDL approach. The results indicate that only RGDP and INTR have significant relationship with INF in the long-run. Budget deficit has no significant influence on inflation both in the long-run and in the short-run. This study concludes that budget deficit cannot be criticized based on its ability to induce inflation and recommends that inflation impact should be given low wait in evaluating budget deficit decisions.

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Inflation Dynamics and Fiscal Deficit in Nigeria: Examination of Causal Relationship

Cited by 3 publications

References 5 publications

Impact of Climate Change on Budget Balance: Implications for Fiscal Policy in the ECOWAS Region

Impact of Climate Change on Budget Balance: Implications for Fiscal Policy in the ECOWAS Region

Türkiye'de Kamu Kesimi Bütçe Açıkları ve Enflasyon İlişkisinin ARDL Sınır Testi Yöntemi ile İncelenmesi

Long-Run and Short-Run Relationship between Budget Deficits and Inflation Rate in Nigeria

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