IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v7y2023i9p1712-1722.html
   My bibliography  Save this article

The Effect of Fiscal Policy on Manufacturing Sector Output in Nigeria

Author

Listed:
  • John O. Aiyedogbon

    (Department of Economics, Bingham University)

  • Olorunfemi George Monday

    (Department of Economics, Bingham University)

  • Obumneke Ezie

    (Department of Economics, Bingham University)

Abstract

The objective of the paper is to investigate the effect of fiscal policy on manufacturing sector output in Nigeria between 1986 and 2021. The type of data utilized was secondary and was extracted from the Central Bank of Nigeria’s 2021 statistical records. The Fully modified ordinary Least Square method of analysis was adapted in carrying out the analysis. Unit root tests were carried out on each of the variables used in the study to avoid spurious regression results, and the results confirmed variables are all stationary at first difference. The Co-integration ARDL bound test showed that long-run relationship exists between the variables, and the conditions necessary to apply the Fully Modified ordinary Least Square method (FMOLS) met. The study’s insights demonstrated that fiscal policy strategies significantly bolster the outputs of the manufacturing Sector output. The article advises that the budget and national planning should earmark increased resources for foundational advancements in their fiscal plans, such as electricity and transportation, as this will augment manufacturing industry results. Additionally, tax breaks and incentives should be granted to the manufacturing sector of Nigeria economy.

Suggested Citation

  • John O. Aiyedogbon & Olorunfemi George Monday & Obumneke Ezie, 2023. "The Effect of Fiscal Policy on Manufacturing Sector Output in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 1712-1722, September.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:9:p:1712-1722
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-7-issue-9/1712-1722.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/journals/ijriss/articles/the-effect-of-fiscal-policy-on-manufacturing-sector-output-in-nigeria/
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:7:y:2023:i:9:p:1712-1722. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.