%0 Journal Article %1 noauthororeditor %A Davies N. | Ifionu E. P. | Ogunbiyi, S. S. | %D 2023 %J Central Asian Journal of Innovations on Tourism Management and Finance %K Capital, Expenditure Infrastructure, Recurrent, Revenue, Tax, Unemployment, %N 1 %P 59-71 %T Fiscal Policy and Employment Dynamics in Nigeria %U https://cajitmf.centralasianstudies.org/index.php/CAJITMF/article/view/396/389 %V 4 %X This paper set out to investigate the effect of fiscal policy on employment dynamics in Nigeria between the periods 1991 to 2020 using secondary data sourced from the Central Bank of Nigeria statistical bulletin. The Augmented Dickey-Fuller test was used to determine the stationarity of the variables while ARDL model and the ARDL long run Bounds test were used to estimate the short and long run relationships amongst the variables. The VECM was employed to determine the speed of correction of disequilibrium. the results reveal that the variables are co-integrated and the VEC indicated a speed of over 88% in correcting disequilibrium in the short run. Government capital expenditure, with a positive and significant impact does not exhibit the desired effect on employment in the short run. However, in the long run, it exerts a negative and significant impact on the rate of unemployment and this does agree with apriori expectation. Government revenue expenditure in the long run has a positive and significant impact on unemployment indicating its ineffectiveness in controlling unemployment. In the short run though, its impact is negative though not significant. Government revenue however, has a negative and significant impact on unemployment rate both in the short run and long run. This suggests that government decision on tax has capacity to impact the state of employment in Nigeria.

@article{noauthororeditor, abstract = {This paper set out to investigate the effect of fiscal policy on employment dynamics in Nigeria between the periods 1991 to 2020 using secondary data sourced from the Central Bank of Nigeria statistical bulletin. The Augmented Dickey-Fuller test was used to determine the stationarity of the variables while ARDL model and the ARDL long run Bounds test were used to estimate the short and long run relationships amongst the variables. The VECM was employed to determine the speed of correction of disequilibrium. the results reveal that the variables are co-integrated and the VEC indicated a speed of over 88% in correcting disequilibrium in the short run. Government capital expenditure, with a positive and significant impact does not exhibit the desired effect on employment in the short run. However, in the long run, it exerts a negative and significant impact on the rate of unemployment and this does agree with apriori expectation. Government revenue expenditure in the long run has a positive and significant impact on unemployment indicating its ineffectiveness in controlling unemployment. In the short run though, its impact is negative though not significant. Government revenue however, has a negative and significant impact on unemployment rate both in the short run and long run. This suggests that government decision on tax has capacity to impact the state of employment in Nigeria.}, added-at = {2023-09-02T08:02:25.000+0200}, author = {Davies N. | Ifionu E. P. | Ogunbiyi, S. S. |}, biburl = {https://www.bibsonomy.org/bibtex/247ce9953713175cacbe5a27869e72b9e/centralasian_20}, interhash = {4e030b2c88664f3d44057a3db0625a6b}, intrahash = {47ce9953713175cacbe5a27869e72b9e}, issn = {2660-454X}, journal = {Central Asian Journal of Innovations on Tourism Management and Finance}, keywords = {Capital, Expenditure Infrastructure, Recurrent, Revenue, Tax, Unemployment,}, language = {english}, month = jan, number = 1, pages = {59-71}, timestamp = {2023-09-02T08:02:25.000+0200}, title = {Fiscal Policy and Employment Dynamics in Nigeria}, url = {https://cajitmf.centralasianstudies.org/index.php/CAJITMF/article/view/396/389}, volume = 4, year = 2023 }