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Fiscal deficits; Economic growth; Money supply; Public expenditure; Public revenue; Granger causality
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An Investigation Of Causal Relationship Between Fiscal Deficits, Economic Growth And Money Supply In Nigeria (1970-2009), Ali Simon Yusufu Bagaji
An Investigation Of Causal Relationship Between Fiscal Deficits, Economic Growth And Money Supply In Nigeria (1970-2009), Ali Simon Yusufu Bagaji
Ali Simon Yusufu Bagaji
This study posits to investigate the relationship between fiscal deficits, economic growth and money supply in Nigeria. In Nigeria, huge fiscal deficits had been recorded over some years. What has been the nature of the relationship between fiscal deficits, economic growth and money supply in Nigeria? To answer this question, Granger causality test was conducted to see whether fiscal deficits granger cause economic growth and money supply or economic growth and money supply granger cause fiscal deficits. The results show that fiscal deficits granger causes economic growth and broad money supply in Nigeria. This implies that fiscal deficits positively affect …