Empirical Investigation of the Nexus among Fiscal Policy, COVID-19 and Economic Growth in Nigeria

  • Lawrence Ehikioya Imoughele, PhD Department of Economics Faculty of Social Sciences Ambrose Alli University, Ekpoma, Edo State, Nigeria
  • Gabriel Emeke Okoro Department of Economics University of Delta, Agbor, Delta State, Nigeria

Abstract

This study was carried out to determine the effect of fiscal policy variables and Covid -19 on Nigeria economic growth from 2015Q1 to 2020Q4. The Ordinary Least Square (OLS) econometric method was employed in testing the relationship among the variables and the results revealed that external debt as a fiscal policy variable has direct and significant effect on the growth of the Nigerian economy while total government revenue has direct but insignificant impact on the growth of the Nigeria economy. Furthermore, the COVID-19 has direct and insignificant effect on the growth of Nigeria’s economy but the interaction between COVID-19 and fiscal policy have an adverse effect on the country economy. Therefore, it was, recommended that the Nigerian government needs to fine-tune its fiscal responsibility by increasing its revenue and expenditure based to bust the growth sector of the Nigerian economy since expenditure is a function of revenue and there is a need to redirect fiscal policy measures toward varying the Nigerian economy from oil and the Nigerian government should have the political will to applied Anti-corruption laws, so that diversion of external debt fund to private pocket can be curtailed.

Author Biography

Lawrence Ehikioya Imoughele, PhD, Department of Economics Faculty of Social Sciences Ambrose Alli University, Ekpoma, Edo State, Nigeria




Published
2021-10-04
How to Cite
IMOUGHELE, PHD, Lawrence Ehikioya; OKORO, Gabriel Emeke. Empirical Investigation of the Nexus among Fiscal Policy, COVID-19 and Economic Growth in Nigeria. SAU JOURNAL OF MANAGEMENT AND SOCIAL SCIENCES, [S.l.], v. 6, n. 2, p. 93-104, oct. 2021. Available at: <https://journals.sau.edu.ng/index.php/sjmas/article/view/338>. Date accessed: 22 oct. 2021.