scholarly journals Causal Relationship between Fiscal Policy and Private Investment in Nigeria for the period 1986 -2019

2021 ◽  
pp. 33-46
Author(s):  
Kenechukwu Origin Chukwu ◽  
Chidi-Okeke Chioma Nnenna ◽  
Chris-Ejiogu Uzoamaka Gloria ◽  
Awe Stanley Kalu
Keyword(s):  
Fiscal Policy ◽  
Causal Relationship ◽  
Research Work ◽  
Policy Instruments ◽  
Secondary Data ◽  
Private Investment ◽  
Raw Material ◽  
Oil Revenue ◽  
Short Run ◽  
The Government

This study investigated the causal relationship between fiscal policy and private investment in Nigeria (1986-2019) using secondary data from Statistical bulletin of Central Bank of Nigeria. The research work used the Granger Causality techniques to test the causal relationship between the independent variables (Tax revenue, Oil revenue, Total expenditure and Public debt) on the dependent variable (Private Investment) while VAR was used to test the short run relationship. The study found that fiscal policy instruments granger causes private investment in Nigeria within the period of the study. The study therefore advocates that Government should as necessity fully liberalized or privatized NNPC and the Power sector as these critical sectors will help the growth of the private sectors and reduce unemployment in the country. Nigerian Government ought to increase its spending on infrastructure, especially capital projects in the economy in order to bridge infrastructure gap in the country. Provision of tax incentives to private sectors by the Government should be encouraged, as this will help the growth of private investment in the country. Also, restructuring of the economy by manufacturing what we need should be encouraged by government because exporting commodity (raw material) means exporting jobs.

scholarly journals INCIDENCIA DE LA POLÍTICA FISCAL VENEZOLANA SOBRE EL FENÓMENO INFLACIONARIO DURANTE 1997-2013

2015 ◽  
Vol 7 (1) ◽  
Author(s):  
Armando Urdaneta
Keyword(s):  
Fiscal Policy ◽  
Inflation Rate ◽  
Policy Instruments ◽  
Secondary Data ◽  
Study Data ◽  
Consumption Expenditure ◽  
Final Consumption ◽  
Need To Evaluate ◽  
The Government ◽  
The Impact

La presente investigación tiene como objetivo analizar la incidencia de la política fiscal venezolana sobre el fenómeno inflacionario durante el periodo 1997-2013, y surge de la necesidad de evaluar los instrumentos de política económica considerando ante un posible escenario de dolarización de la economía y el impacto que las variables de política fiscal pudiesen tener en el comportamiento del nivel de precios, según los planteamientos de Mochón (2008) y Guerra (2013) entre otros. La metodología es de tipo analítica y retrospectiva; en el diseño bibliográfico se utilizaron datos secundarios, tales como los informes económicos del Banco Central de Venezuela (BCV), atendiendo con especial detalle series de tiempo y suavización exponencial de las variables estudiadas en periodos trimestrales. De esta manera se concluye una baja y mediana correlación entre las variables sujetas a estudio, que da como resultado una correlación de 0,25 entre la tasa de inflación y el gasto de consumo final del Gobierno y de 0,61 entre los impuestos netos sobre sus propios productos del Gobierno y su gasto de consumo final; se termina obteniendo una nula correlación de 0,002 entre los impuestos netos sobre los productos del Gobierno y la tasa de inflación.AbstractThis research aims to analyze the impact of Venezuela's fiscal policy on the inflation phenomena during the period 1997-2013; the study arises from the need to evaluate policy instruments to be considered before a possible scenario of dollarization of the economy, and the impact that fiscal policy variables could have on the behavior of the price level. Such approach is supported in Mochon (2008) and War (2013) among others. The type of methodology is analytical and retrospective; on the bibliographic design side secondary data was used, such as the economic reports of the Central Bank of Venezuela (BCV), making a detailed study using time series and exponential smoothing of the variables under study data were used in Quarterly periods. A low and medium correlation between the variables subject to study was concluded, resulting in a correlation of 0.25 between the inflation rate and the final consumption expenditure of government and 0.61 between net taxes on products and government final consumption expenditure of government; to finally obtain a zero correlation of 0.002 between the net taxes on products of the government and the inflation rate.

scholarly journals Determinants of Non-Linear Effects of Fiscal Policy on Output: The Case of Bulgaria

2009 ◽  
Vol 4 (1) ◽  
pp. 51-61 ◽  
Author(s):  
Vladimir Vladimirov ◽  
Maria Neycheva
Keyword(s):  
Fiscal Policy ◽  
Currency Board ◽  
Main Determinant ◽  
The Real ◽  
Real Gdp ◽  
Non Linear ◽  
Short Run ◽  
Linear Effects ◽  
Policy Impacts ◽  
The Government

Determinants of Non-Linear Effects of Fiscal Policy on Output: The Case of BulgariaThe paper illuminates the non-linear effects of the government budget on short-run economic activity. The study shows that in the Bulgarian economy under a Currency Board Arrangement the tax policy impacts the real growth in the standard Keynesian manner. On the other hand, the expenditure policy exhibits non-Keynesian behavior on the short-run output: cuts in government spending accelerate the real GDP growth. The main determinant of this outcome is the size of the discretionary budgetary changes. The results imply that the balanced budget rule improves the sustainability of public finances without assuring a growth-enhancing effect.

scholarly journals Economic policy and confidence of economic agents – a causal relationship?

2020 ◽  
Vol 20 (4) ◽  
pp. 471-484
Author(s):  
Silvo Dajčman
Keyword(s):  
Fiscal Policy ◽  
Granger Causality ◽  
Government Spending ◽  
Government Expenditure ◽  
Policy Instruments ◽  
Consumer Confidence ◽  
Causality Analysis ◽  
Economic Agents ◽  
Business Confidence ◽  
The Government

AbstractThe purpose of this paper is to study whether innovations in monetary and fiscal policy are a leading indicator of future business and consumer confidence and reverse applying the panel Granger causality analysis to two periods in the history of the euro area: before and after the start of the Great Recession. The results show that Granger causality interaction between the confidence of economic agents and the stance of monetary policy (measured by the shadow rate) is stronger than between the former and the fiscal policy instruments. The European Central Bank (ECB) shadow rate innovations Granger caused business and consumer confidence in both periods, but also indicators of confidence Granger caused the shadow rate. No such feedback could be established between two fiscal policy instruments (government expenditure and revenue growth) and the indicators of confidence. Government spending and revenues Granger caused business confidence in the first subperiod, but not in the second subperiod when the causality reversed. The government revenues Granger caused consumer confidence in the first subperiod, while government expenditures in the second subperiod. Consumer confidence Granger caused government spending in the first subperiod.

scholarly journals How Fiscal Policy in Bulgaria may Affect the Transition to a Low Carbon Economy?

2020 ◽  
Vol 26 (4) ◽  
pp. 525-535
Keyword(s):  
Fiscal Policy ◽  
Policy Instruments ◽  
Macroeconomic Policy ◽  
Currency Board ◽  
Low Carbon ◽  
Low Carbon Economy ◽  
Policy Goals ◽  
Short Run ◽  
Macroeconomic Environment ◽  
Carbon Economy

The adaptation of traditional macroeconomic policy goals to new ecological realities assigns a specific role to macroeconomic policy. We model the short-run transmission mechanism of fiscal policy under Currency Board Arrangements in Bulgaria in order to assess the fiscal policy potential to boost sustainable economic development and compensate for the economic growth losses due to decarbonisation of the economy. We find that fiscal policy instruments in Bulgaria have no statistically significant effect on GDP components considered separately but they do have a complex effect on macroeconomic environment in the country. This indicates that specific fiscal policy effects to support the transition to a low-carbon economy in Bulgaria cannot be expected and the structural policies should be followed.

Kebijakan Fiskal pada Masa Rasulullah dan Sekarang

2020 ◽  
Vol 3 (2) ◽  
pp. 153-168
Author(s):  
Ibnu Hasan Karbila ◽  
Abdul Helim ◽  
Rofii Rofii
Keyword(s):  
Fiscal Policy ◽  
Data Collection ◽  
Policy Instruments ◽  
Secondary Data ◽  
The State ◽  
Literature Study ◽  
Capitalist Economy ◽  
Data Collection Methods ◽  
Second Year ◽  
Collection Methods

This study aimed at distinguishing fiscal policy during the time of the Prophet and the fiscal policy prevailing in Indonesia. The study method in this research is literature study. The type of data used is secondary data with data collection methods through literature study. The results showed that during the time of the Prophet, the first fiscal policy that was taken after moving to Medina was to make muhajirin and ansar fraternal and provide employment for the Muhajirin. In the second year, almsgiving and fitrah are compulsory, followed by zakat in the ninth year of hijriyah. From here emerged fiscal policy instruments derived from zakat, infaq, alms and waqf. Some of these elements are mandatory and some are voluntary. Zakat is an element that must be paid after reaching the nisab, while infaq, alms and waqf are voluntary. This voluntary element is what distinguishes an Islamic economy from a capitalist economy. Another difference between the two is related to the management of state money where part of the APBN sources obtained from debt must be free from the element of interest, thus, the state debt can actually be obtained in ways that are in accordance with Islamic Sharia

LPG consumption and economic growth, 1975-2016: evidence from Cameroon

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jean Gaston Tamba
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Liquefied Petroleum Gas ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Gas Consumption ◽  
The Government ◽  
Energy Efficiency Policies

Purpose This paper aims to examine the causal relationship between liquefied petroleum gas consumption and economic growth in Cameroon over the period from 1975 to 2016. Design/methodology/approach The methodology of this study is based on the unit root, cointegration and causality tests. Cointegration is performed with both Johansen and autoregressive distributed lag bounds approach, while causality is done with the Granger test based on the error correction model (ECM) and Toda-Yamamoto procedure. Findings The cointegration methods confirm the existence of a level relationship, whereas the causal tests of the ECM reveal the existence of a short-run unidirectional causal relationship ranging from liquefied petroleum gas (LPG) consumption to economic growth and a bidirectional causal relationship between long-term and high-causality variables. With the Toda-Yamamoto procedure, unidirectional causality is found to run from economic growth to liquefied petroleum gas consumption. Research limitations/implications These findings imply that an increase in liquefied petroleum gas consumption leads to an increase in economic growth. As a result, supporting energy efficiency policies that aim to reduce liquefied petroleum gas consumption is not an option for Cameroon. Given that LPG consumption shares are still low in Cameroon, the government ought, thus, to increase LPG subsidization, vulgarize and favor policies aimed at encouraging LPG consumption to increase LPG deposits nationwide. This would help increase LPG consumption and consequently could increase economic growth in Cameroon. Originality/value LPG is a fossil fuel and is the less GHG emitter and it is considered as a modern source of energy for cooking in Cameroon households. It scarcity calls on energy policymakers to question the influence LPG consumption could have on economic growth in the short- and long-run. Thus, this paper could contribute to solving the issue of deforestation in Cameroon, especially in the Sahel zone; through the substitution of firewood consumption by LPG consumption in households.

Strategies for Developing Sustainable and Competitive Cluster For Handycrafts –Based Small Medium Enterprise (SME)

2020 ◽  
Vol 8 (3) ◽  
pp. 11-20
Author(s):  
Lindawati Kartika
Keyword(s):  
Global Economy ◽  
External Environment ◽  
Secondary Data ◽  
Policy Formulation ◽  
Raw Material ◽  
Local Market ◽  
Internal Factors ◽  
Record Keeping ◽  
High Productivity ◽  
The Government

The SME Assist concept was formulated in August 2009 in line with the philosophy of university-industry engagement. Small Medium Enterprises (SMEs) are important economic driving force in many countries. Previous researches show that efforts taken by various parties and governments of different countries have helped improve and transform SMEs to be competitive in the fast changing global economy. In Indonesia specifically in Bogor regency, West Java, there are different models or approaches adopted and implemented by various parties. However, competitiveness of SME  remains an area of concern. For Handycrafts-based SME, in order to meet these expectations and fulfil their contributions to the development process, it is absolutely important that they have high productivity. It is essential that these industries provide productive and remunerative employment and, for their survival and growth, offer products and services at competitive quality and price. The Handycrafts-based SME has a potential to develop in Bogor Regency which is located in tourism area and divided into Villages (Cilember, Leuwimalang, Cisarua, Cibeireum, Kopo and Jogjogan) in Cisarua District.             Handycrafts is the dominant cluster that can generate earning sources and give role of economics which is very significant. Unfortunately, the existence of the Handycrafts-based SME is not as good as most people expected, because there are many constraints faced. In the mean time, the infrastructure and access information concerning capital, technology, management and marketing are limited. Therefore, it is essential to formulate strategy to develop handycrafts-based SME based on internal and external factors. The objectives of this research are to identify the characteristics of handycrafts-based SME in Bogor Regency to have actual conditions, and to analyze the SME’s internal-external environment and to select the alternative strategies for development .             The development strategies of handycrafts-based SME are proposed according to external and internal factors. These factors influence and determine the development dynamic and growth of handycrafts-based SME. The combination of strength and weaknesses together with external situation will determine the development posibility of SME. The score analysis method was used to analyze the internal external environment used for generating strategy using analytical Hierarchy Process (AHP) method. Hierarcy decisions was based on interpretation of secondary data concerning external and internal factors which influence the growth of SME and early discussion with experts from the SME entrepeneurs, academics, and local government. The prioritation of alternatives strategy was determined synchronization of literature and opinion of expert responder, then the result was processed with AHP. The results of this research show that the characteristics of handycrafts-based SME in Bogor Regency are: using traditional management, simple record-keeping administration, having local market and regional sale, utilize local or regional raw material, perform continous production system, having good quality awareness, using self or family capital resource, utilize simple equipments and technology and also having good innovation capability. According to the score assessment of AHP, the main strategy for the development of handycrafts-based SME in Bogor Regency is give more or better attention for policy formulation and based on socialpreneurship. This strategy means that the government policy should enhance or at least not constraining the development of handycrafts-based SME. The policy should also accommodate the necessity of all stakeholders related to handycrafts-based SME

scholarly journals Fiscal Policy and the Performance of Private Sector in Nigeria (1990-2019): A Vector Error Correction Investigation

2021 ◽  
Vol 4 (2) ◽  
pp. 94-103
Author(s):  
Andabai Priye Werigbelegha
Keyword(s):  
Fiscal Policy ◽  
Private Sector ◽  
Significant Relationship ◽  
Growth And Development ◽  
Capital Expenditure ◽  
Secondary Data ◽  
Sustainable Growth ◽  
Coefficient Of Determination ◽  
Explanatory Variables ◽  
The Government

The study examines the relationship between fiscal policy and the performance of private sector in Nigeria; for the period 1990-2019. Secondary data are collected from Central Bank of Nigeria Statistical Bulletin, 2019. Four variables are employ for this study. These are Private Sector Output as proxy for performance of private sector economy and used as the dependent variable; whereas, the explanatory variables include Tax, Recurrent Expenditure and Capital Expenditure. Hypotheses are formulated and tested using time series econometric models. The result confirms that about 68% short-run adjustment speed from long-run disequilibrium. The study shows a significant relationship between capital expenditure and private sector output in Nigeria. Taxation has a significant relationship with private sector output in Nigeria. Recurrent expenditure has a significant relationship with private sector output in Nigeria. The coefficient of determination indicates that about 62% of the variations in economic growth can be explain by changes in fiscal policy variables in Nigeria. The study concludes that fiscal policy has a significant relationship with the growth and development of Nigerian economy. The study recommends that more resources should be relocated to productive sectors and increasing and sustaining a spending on the productive sectors of the economy. The study suggested that Nigerian government should put a stop to the incessant unproductive foreign borrowing, wasteful spending and uncontrolled money supply. The government should embark on specific policies aimed at achieving increased and sustainable growth and development in the economy.

scholarly journals Fiscal Sustainability in Poland: How Did the Public Policy Shift of 2016–2019 Impact the Country’s Long-Term Sustainability?

Ekonomista ◽  
2021 ◽  
Vol 6 ◽  
Author(s):  
Maciej WYSOCKI ◽  
Cezary WÓJCIK
Keyword(s):  
Fiscal Policy ◽  
Policy Instruments ◽  
Fiscal Sustainability ◽  
Social Programs ◽  
Social Expenditure ◽  
Significant Deterioration ◽  
The Public ◽  
Policy Shift ◽  
The Government

In 2016–2019 Poland experienced a major social and fiscal policy shift: new government decreased the statutory retirement age and launched several new social programs, including the sweeping Family 500+ program under which social expenditure on family and children support increased suddenly from 1.5% to nearly 3% of GDP. Moreover, VAT gap reduction policies have been implemented swiftly. The new policy move became highly controversial. Many economists argued that overall it would lead to a significant deterioration of long-term fiscal sustainability. The government argued in turn that the new program was well financed by a complementary policy of VAT gap reduction and saw no risk to country’s fiscal sustainability. This paper provides one of the first evidence of the adverse effect of the policy shift on long-term fiscal sustainability. The analysis reveals that fiscal sustainability parameters have deteriorated significantly after 2016. Overall, the estimations presented in the paper show that in the period of 2016–2019 fiscal sustainability parameters may have been the lowest since Poland joined the EU in 2004. While these results should be treated with caution as they draw on very recent time series, the deterioration of Poland’s fiscal sustainability raises a pertinent policy question related to country’s capacity to respond to the COVID-19 pandemic, in particular in terms of the ability to use standard and non-standard fiscal policy instruments and monetary policy tools in response to the shock.

scholarly journals The Relationship Between External Debt, Economic Growth, Unemployment and National Expenditure in Viet Nam

2018 ◽  
Vol 1 (2) ◽  
pp. p129
Author(s):  
Anh Tru Nguyen
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
External Debt ◽  
Viet Nam ◽  
Credit Growth ◽  
Short Run ◽  
The Government ◽  
The Relationship ◽  
Macroeconomic Stability

The article examines the relationship between external debt, economic growth, unemployment and national expenditure in Viet Nam between 1987 and 2016. We found that the influence of a variable on other variables varies in the short run. We found that there are directional relationships between GDP and external debt and GDP and national expenditure. We also found that there are directional relationships between unemployment and external debt, GDP, and national expenditure. Results addressed directional relationships between national expenditure and external debt and GDP. There are two co-integrations among variables. In order to sustain macroeconomic stability in Viet Nam, fiscal policy should be re-examined to meet large development needs and monetary policy should be tightened to reduce credit growth. Specifically, external debt should be effectively managed by the government because an increase in external debt leads to a decrease in GDP and a growth of unemployment. Moreover, GDP should be facilitated to reduce unemployment in the economy. Lastly, unemployment needs to be controlled because it generates a boom of national expenditure and vice versa.

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