Asymmetric relationship between Budget Deficit and Economic Growth in Nigeria.
Keywords:
Asymmetries, Budget Deficit, Economic Growth and NARDL.Abstract
This study examines asymmetry in the nexus between budget deficit and economic growth in Nigeria from 1981 to 2018 using a nonlinear ARDL model advanced by Shin et al. (2014). The findings suggest the presence of asymmetries in the nexus between the indicated variables in the short and long run.
The findings further show that budget deficit affect economic growth both in the short and long run negatively which makes this work a landmark since previous studies were unable to capture this aspect of non-linearity. Therefore, there is need for the government to ensure proper monitoring of the budget implementation as well as ensuring fiscal discipline among all tiers of government and parastatals in the country so as to ensure that the desired outcome is achieved both in the short and long run.
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