MAZEDAN DIGITAL LIBRARY

Visitors: 1383

MAZEDAN DIGITAL LIBRARY

JOURNAL MANAGEMENT SYSTEM

MDL

JMS

Inflation's Impact on Government Spending in the Nigerian Economy (1981-2019)

JOURNAL:MAZEDAN INTERNATIONAL BUSINESS REVIEW

#	Authors	First Online	DOI	Downloads	Citations
1.	Gwaison Panan Danladi	10 Dec 2021	na	3	0

Abstract

Inflation is an unavoidable part of every economy. It has an impact on every country, whether developed and developing, both badly and positively. From 1981 to 2019, this research looked at the influence of inflation on government expenditure in the Nigerian economy. Ex-post-facto research design was used in this study. In this study, secondary data from the Central Bank of Nigeria's statistics Bulletin of 2020 is analyzed using the Ordinary Least Square (OLS) regression approach. The statistical program E-view version 10 was utilized. Inflation has an inverse and considerable influence on public expenditure in the economy, according to the findings. It also demonstrates that inflation and government expenditure have a bidirectional causal relationship. To successfully control the money supply in the economy, the research advised the establishment of an adequate fiscal and monetary policy combination. Among the proposals given were to redirect government expenditure to productive sectors of the economy in order to enhance the supply of products and services compared to demand, hence minimizing rising inflationary pressures and transforming the economy to production-based.

Keywords

inflation, money supply, Ordinary Least Square, government spending’s

References

[1]           Ademola, A. S. and Badiru, A. (2016) The impact of unemployment and inflation on economic growth in Nigeria, International Journal of Business and Economic Sciences Applied Research 9(1): 47-55.

[2]           Bingilar, P.F.& Oyadonghan, J.K. (2020) Impact of Government Expenditure on Economic Growth in Nigeria. World Journal of Finance and Investment Research 5(1)21-31

[3]           Central Bank of Nigeria (2020). Statistical Bulletin, 26, December.

[4]           Dikeogu, C.C. (2018). Public Spending and Inflation in Nigeria. International Journal of

[5]           Advanced Academic Research. Social and Management Sciences, 4, (12).