Fiscal Decentralization and Economic Growth in Nigeria: New Evidences

Johnson Akpan Atan; Godwin Essang Esu

doi:doi:10.11648/j.jbed.20210602.14

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Fiscal Decentralization and Economic Growth in Nigeria: New Evidences

Johnson Akpan Atan, Godwin Essang Esu

Published in Journal of Business and Economic Development (Volume 6, Issue 2)

Received: 20 April 2021 Accepted: 10 May 2021 Published: 21 May 2021

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Abstract

The debate regarding the role of fiscal decentralization in promoting economic growth and by extension, improving the wellbeing of the people, has been at the front burner in macroeconomic policy discuss. Studies have attempted to establish the direct interaction for most countries and regions, but not many conclusions have converged, hence necessitating this study. This study, therefore, re-examined the effect of decentralization on economic growth in Nigeria. Using fiscal decentralization data, (which included expenditures for national, subnational and local government) and other control variables, sourced from mainly secondary sources (World Development Indicators [WDI] and Central Bank of Nigeria’s [CBN] Statistical Bulletin various years) and employing basic OLS technique and Error Correction Mechanism (ECM), the results showed, amongst other issues, that fiscal decentralisation may not directly impact on economic growth, but the effects can be transmitted through efficient economic management process, which may be a product of effectively-managed fiscal decentralization processes. The study, therefore, recommended, amongst other things, that efficient systems should be promoted in the decentralization process to enhance economic growth. Viable human capital/infrastructure base should be built to drive as well as enhance productive fiscal decentralization, through strategic policies finetuning, and finally, check inflation and corruption, amongst other ills, if growth must be actualized and sustained.

Published in	Journal of Business and Economic Development (Volume 6, Issue 2)
DOI	10.11648/j.jbed.20210602.14
Page(s)	82-96
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Fiscal Decentralisation, Economic Growth, ECM

References

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Johnson Akpan Atan, Godwin Essang Esu. (2021). Fiscal Decentralization and Economic Growth in Nigeria: New Evidences. Journal of Business and Economic Development, 6(2), 82-96. https://doi.org/10.11648/j.jbed.20210602.14

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Johnson Akpan Atan; Godwin Essang Esu. Fiscal Decentralization and Economic Growth in Nigeria: New Evidences. J. Bus. Econ. Dev. 2021, 6(2), 82-96. doi: 10.11648/j.jbed.20210602.14

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Johnson Akpan Atan, Godwin Essang Esu. Fiscal Decentralization and Economic Growth in Nigeria: New Evidences. J Bus Econ Dev. 2021;6(2):82-96. doi: 10.11648/j.jbed.20210602.14

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@article{10.11648/j.jbed.20210602.14,
  author = {Johnson Akpan Atan and Godwin Essang Esu},
  title = {Fiscal Decentralization and Economic Growth in Nigeria: New Evidences},
  journal = {Journal of Business and Economic Development},
  volume = {6},
  number = {2},
  pages = {82-96},
  doi = {10.11648/j.jbed.20210602.14},
  url = {https://doi.org/10.11648/j.jbed.20210602.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20210602.14},
  abstract = {The debate regarding the role of fiscal decentralization in promoting economic growth and by extension, improving the wellbeing of the people, has been at the front burner in macroeconomic policy discuss. Studies have attempted to establish the direct interaction for most countries and regions, but not many conclusions have converged, hence necessitating this study. This study, therefore, re-examined the effect of decentralization on economic growth in Nigeria. Using fiscal decentralization data, (which included expenditures for national, subnational and local government) and other control variables, sourced from mainly secondary sources (World Development Indicators [WDI] and Central Bank of Nigeria’s [CBN] Statistical Bulletin various years) and employing basic OLS technique and Error Correction Mechanism (ECM), the results showed, amongst other issues, that fiscal decentralisation may not directly impact on economic growth, but the effects can be transmitted through efficient economic management process, which may be a product of effectively-managed fiscal decentralization processes. The study, therefore, recommended, amongst other things, that efficient systems should be promoted in the decentralization process to enhance economic growth. Viable human capital/infrastructure base should be built to drive as well as enhance productive fiscal decentralization, through strategic policies finetuning, and finally, check inflation and corruption, amongst other ills, if growth must be actualized and sustained.},
 year = {2021}
}

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TY  - JOUR
T1  - Fiscal Decentralization and Economic Growth in Nigeria: New Evidences
AU  - Johnson Akpan Atan
AU  - Godwin Essang Esu
Y1  - 2021/05/21
PY  - 2021
N1  - https://doi.org/10.11648/j.jbed.20210602.14
DO  - 10.11648/j.jbed.20210602.14
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
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PB  - Science Publishing Group
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UR  - https://doi.org/10.11648/j.jbed.20210602.14
AB  - The debate regarding the role of fiscal decentralization in promoting economic growth and by extension, improving the wellbeing of the people, has been at the front burner in macroeconomic policy discuss. Studies have attempted to establish the direct interaction for most countries and regions, but not many conclusions have converged, hence necessitating this study. This study, therefore, re-examined the effect of decentralization on economic growth in Nigeria. Using fiscal decentralization data, (which included expenditures for national, subnational and local government) and other control variables, sourced from mainly secondary sources (World Development Indicators [WDI] and Central Bank of Nigeria’s [CBN] Statistical Bulletin various years) and employing basic OLS technique and Error Correction Mechanism (ECM), the results showed, amongst other issues, that fiscal decentralisation may not directly impact on economic growth, but the effects can be transmitted through efficient economic management process, which may be a product of effectively-managed fiscal decentralization processes. The study, therefore, recommended, amongst other things, that efficient systems should be promoted in the decentralization process to enhance economic growth. Viable human capital/infrastructure base should be built to drive as well as enhance productive fiscal decentralization, through strategic policies finetuning, and finally, check inflation and corruption, amongst other ills, if growth must be actualized and sustained.
VL  - 6
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Johnson Akpan Atan

Department of Economics, Faculty of Social Sciences, University of Uyo, Uyo, Nigeria
Godwin Essang Esu

Department of Economics, Faculty of Social Sciences, University of Uyo, Uyo, Nigeria

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Johnson Akpan Atan, Godwin Essang Esu. (2021). Fiscal Decentralization and Economic Growth in Nigeria: New Evidences. Journal of Business and Economic Development, 6(2), 82-96. https://doi.org/10.11648/j.jbed.20210602.14

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Johnson Akpan Atan; Godwin Essang Esu. Fiscal Decentralization and Economic Growth in Nigeria: New Evidences. J. Bus. Econ. Dev. 2021, 6(2), 82-96. doi: 10.11648/j.jbed.20210602.14

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Johnson Akpan Atan, Godwin Essang Esu. Fiscal Decentralization and Economic Growth in Nigeria: New Evidences. J Bus Econ Dev. 2021;6(2):82-96. doi: 10.11648/j.jbed.20210602.14

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@article{10.11648/j.jbed.20210602.14,
  author = {Johnson Akpan Atan and Godwin Essang Esu},
  title = {Fiscal Decentralization and Economic Growth in Nigeria: New Evidences},
  journal = {Journal of Business and Economic Development},
  volume = {6},
  number = {2},
  pages = {82-96},
  doi = {10.11648/j.jbed.20210602.14},
  url = {https://doi.org/10.11648/j.jbed.20210602.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20210602.14},
  abstract = {The debate regarding the role of fiscal decentralization in promoting economic growth and by extension, improving the wellbeing of the people, has been at the front burner in macroeconomic policy discuss. Studies have attempted to establish the direct interaction for most countries and regions, but not many conclusions have converged, hence necessitating this study. This study, therefore, re-examined the effect of decentralization on economic growth in Nigeria. Using fiscal decentralization data, (which included expenditures for national, subnational and local government) and other control variables, sourced from mainly secondary sources (World Development Indicators [WDI] and Central Bank of Nigeria’s [CBN] Statistical Bulletin various years) and employing basic OLS technique and Error Correction Mechanism (ECM), the results showed, amongst other issues, that fiscal decentralisation may not directly impact on economic growth, but the effects can be transmitted through efficient economic management process, which may be a product of effectively-managed fiscal decentralization processes. The study, therefore, recommended, amongst other things, that efficient systems should be promoted in the decentralization process to enhance economic growth. Viable human capital/infrastructure base should be built to drive as well as enhance productive fiscal decentralization, through strategic policies finetuning, and finally, check inflation and corruption, amongst other ills, if growth must be actualized and sustained.},
 year = {2021}
}

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TY  - JOUR
T1  - Fiscal Decentralization and Economic Growth in Nigeria: New Evidences
AU  - Johnson Akpan Atan
AU  - Godwin Essang Esu
Y1  - 2021/05/21
PY  - 2021
N1  - https://doi.org/10.11648/j.jbed.20210602.14
DO  - 10.11648/j.jbed.20210602.14
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 82
EP  - 96
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20210602.14
AB  - The debate regarding the role of fiscal decentralization in promoting economic growth and by extension, improving the wellbeing of the people, has been at the front burner in macroeconomic policy discuss. Studies have attempted to establish the direct interaction for most countries and regions, but not many conclusions have converged, hence necessitating this study. This study, therefore, re-examined the effect of decentralization on economic growth in Nigeria. Using fiscal decentralization data, (which included expenditures for national, subnational and local government) and other control variables, sourced from mainly secondary sources (World Development Indicators [WDI] and Central Bank of Nigeria’s [CBN] Statistical Bulletin various years) and employing basic OLS technique and Error Correction Mechanism (ECM), the results showed, amongst other issues, that fiscal decentralisation may not directly impact on economic growth, but the effects can be transmitted through efficient economic management process, which may be a product of effectively-managed fiscal decentralization processes. The study, therefore, recommended, amongst other things, that efficient systems should be promoted in the decentralization process to enhance economic growth. Viable human capital/infrastructure base should be built to drive as well as enhance productive fiscal decentralization, through strategic policies finetuning, and finally, check inflation and corruption, amongst other ills, if growth must be actualized and sustained.
VL  - 6
IS  - 2
ER  -

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