IMPACT OF FISCAL POLICY INSTRUMENTS ON UNEMPLOYMENT REDUCTION IN NIGERIA

Authors

  • Mansur Abdullahi Federal University Gusau, Zamfara State.
  • Abdullahi Ibrahim Haruna

DOI:

https://doi.org/10.57233/gujeds.v1i1.41

Keywords:

Fiscal Policy, Unemployment, ARDL

Abstract

This study seeks to analyze the impact of fiscal policy instruments on unemployment in Nigeria from 1986 to 2020. The paper employed annual time series data obtained from central bank of Nigeria (CBN) statistical bulletin. Unemployment was proxied by
Unemployment Rate (UMP) while fiscal policy instruments include external debt (EXD), capital expenditure (CPE), recurrent expenditure (RCE) and tax revenue (TRV). Autoregressive Distributed Lag (ARDL) Model was employed to test the long and short
run relationship between the study variables. The co-integration bound test result shows that the variables are co-integrated. The result reveals that external debt, recurrent expenditure, and tax revenue have statistically insignificant impact on
unemployment in Nigeria but capital expenditure was significance. Based on the findings, we recommended that since fiscal policy instruments alone cannot address the problem of unemployment, government should device and employ other measures such
as; the use of monetary policy tools, establishment of a synergy between fiscal and monetary policies in Nigeria.

Author Biographies

Mansur Abdullahi , Federal University Gusau, Zamfara State.

Department of Economics,
Federal University Gusau,
Zamfara State, Nigeria

Abdullahi Ibrahim Haruna

Department of Economics,
Federal University Gusau,
Zamfara State, Nigeria

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Published

2021-11-22

How to Cite

Abdullahi , M., & Ibrahim Haruna , A. (2021). IMPACT OF FISCAL POLICY INSTRUMENTS ON UNEMPLOYMENT REDUCTION IN NIGERIA. GUSAU JOURNAL OF ECONOMICS AND DEVELOPMENT STUDIES, 1(1), 259–270. https://doi.org/10.57233/gujeds.v1i1.41