FISCAL POLICY AND EMPLOYMENT GENERATION IN NIGERIA

Chioma Chidinma George-Anokwuru

Abstract


This paper investigated the influence of fiscal policy on employment generation in Nigeria. The analyzed data, spanning 1981 to 2020 were obtained from the statistical bulletin of Nigeria’s apex bank and the country’s Bureau of Statistics. The Error Correction Model was applied as the main analytical tool. The results showed that aggregate government expenditure has a positive but insignificant influence on the employment rate. In addition, total tax revenue and external debt service have negative and insignificant influences on the employment rate in Nigeria. What this suggests is that fiscal policy tools of aggregate government expenditure, total tax revenue and external debt service have not effectively helped to increase the level of employment in Nigeria. Generating from the findings, this paper suggested that government should maintain fiscal prudence and ensure that total tax revenue is efficiently and effectively utilized to provide infrastructural facilities and social amenities that will help the various sectors of the economy to function very well thereby generating enough employment in the country.

JEL: O15; E24; J21; H60

 

Article visualizations:

Hit counter


Keywords


fiscal policy, employment, tax revenue and external debt service

Full Text:

PDF

References


Abdullahi, S. A. (2014). Impact of Government Expenditure on Employment Generation: Evidence from Nigeria. Department of Financial Studies Faculty of Management Sciences National Open University of Nigeria, Lagos. Retrieved online, March, 2016.

Abomaye-Nimenibo, W. A. S. & Inimino, E. E. (2016). An Empirical Analysis of Fiscal Policy Measures and Unemployment in Nigeria. Journal of Social Sciences and Public Policy, 8(2), 1-25.

Akpakpan, E. B. (1999). The Economy: Towards a New Type of Economics. Port Harcourt: New Generation Publishers, 208p.

Andrea, T. (2015). The Effects of Fiscal Policy on Employment: an analysis of the Aggregate Evidence. Working Papers, Department of Economics Ca’ Foscari University of Venice, No. 03/WP/2015, ISSN 1827-3580.

Anthanasios, O. T. (2013). The unemployment effects of fiscal policy: Recent evidence from Greece. IZA Journal of European Labour Studies, 2(11).

Antonio, F. & Ilian, M. (2001). The Effects of Fiscal Policy on Consumption and Employment: Theory and Evidence. Centre for Economic Policy Research, Discussion Paper No. 2760April 2001.

Attahir, B. A. (2016). Dynamic Effects of Fiscal Policy on Output and Unemployment in Nigeria: An Econometric Investigation. CBN Journal of Applied Statistics, 7(2).

Bova, E., Kolerus, C. & Tapsoba, S. J. A. (2015). A Fiscal Job? An Analysis of Fiscal Policy and the Labor Market. IZA Journal of Labor Policy, 4(13), 1-17.

CBN (Central Bank of Nigeria) (2013). Annual Economic Report 31st December 2013.

CBN (Central Bank of Nigeria) (2013). Contemporary Economic Policy Issues in Nigeria, Abuja, 13.

CBN (Central Bank of Nigeria) (2010). Annual Economic Report 31st December 2010.

CBN (Central Bank of Nigeria) (2011). Annual Economic Report 31st December 2011.

CBN (Central Bank of Nigeria) (2017). Annual Economic Report 31st December 2017.

CBN (Central Bank of Nigeria) (2018). Annual Economic Report 31st December 2018.

CBN (Central Bank of Nigeria) (2020). Annual Economic Report 31st December 2020.

Chris, B. (2008). Introductory Econometrics for Finance. The Cambridge University Press, New York, 420.

Christian, B., Falko, J. & Roland, W. (2017). Fiscal Policy and Occupational Employment Dynamics. IZA Institute of Labour Economics Discussion Paper Series No. 10466. Pp1-14.

Conway, E. (2009). 50 Economics Ideas You Really Need to Know. Quetons. New York.

Danjuma, A. & Bala, K. (2012). Role of Governance in Employment Generation in Nigeria. Journal of Business and Management, 3(3), 27-31.

George-Anokwuru, C. C., Olisa, F. U. & Obayori, J. B. (2020). Indirect Tax and Employment Generation in Nigeria. Asian Business Research Journal, Vol. 5, 7-12.

Gujarati, D. N. (2007). Basic Econometric. Tata McGraw-Hill Publishing Company Ltd. Delhi. 841p.

Iyoha, M. A. & Ekanem, O. T. (2002). Introductory Econometrics. Benin City: Mareh Publishers.

Michele, C. (2005). Government Employment and the Dynamic Effects of Fiscal Policy Shocks.

Monacelli, T., Perotti, R. & Trigari, A. (2010). Unemployment fiscal multipliers. Journal of Monetary Economics, 57(5), 57:531–553.

National Bureau of Statistics (NBS, 2011). National Bureau of Statistics Annual Data.

Obayori, J. B. (2016). Fiscal Policy and Unemployment in Nigeria. The International Journal of Social Sciences and Humanities Invention. Volume 3(2).

Olukayode, E., M. & Olorunfemi Y., A. (2018). Fiscal Policy Tools, Employment Generation and Sustainable Development in Nigeria. ACTA UNIVERSITATIS DANUBIUS, 14(3), 186-199.

Pappa, E. (2009). The effects of fiscal shocks on employment and the real wage. International Economic Review, 50(1), 217–244.

Tagkalakis, A. (2006). The effects of macroeconomic policy shocks on the UK labor market. International Journal of Finance and Economics, 11(3), 229–244.

Udeorah, S., Obayori, J. B. & Krokeyi, S. W. (2017). Fiscal Policy and Employment in an Emerging Economy: The Nigeria Experience. International Journal of Scientific Research, 2(4), 18-25.

Umo, J. U. (2012). Economics: An African Perspective 2nd Edition. Millennium Text Publishers Limited Plot 6B, Block 22, Humanities Road, Unilag Estate, Magodo, Isheri, Lagos, Nigeria. 374p.




DOI: http://dx.doi.org/10.46827/ejefr.v6i2.1282

Refbacks

  • There are currently no refbacks.


Copyright (c) 2022 Chioma Chidinma George-Anokwuru

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2016 - 2023. European Journal of Economic and Financial Research (ISSN 2501-9430) is a registered trademark of Open Access Publishing Group. All rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.