The Causal Relationship Between Government Spending and Revenue in an Oil-Dependent Economy: The Case of Nigeria
Omoaregba Omoniyi Aregbeyen, Taofik Mohammed Ibrahim
Abstract
Omoaregba Omoniyi Aregbeyen, Taofik Mohammed Ibrahim
Abstract
This paper applies the technique of Granger causality to determine the relationship between total government expenditure and revenue in Nigeria for the period 1970-2006. The findings of the study generally support the existence of bidirectional causality between government spending and tax revenue, suggesting that the fiscal synchronization hypothesis is confirmed for Nigeria.
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This paper applies the technique of Granger causality to determine the relationship between total government expenditure and revenue in Nigeria for the period 1970-2006. The findings of the study generally support the existence of bidirectional causality between government spending and tax revenue, suggesting that the fiscal synchronization hypothesis is confirmed for Nigeria.
Key concepts: Government revenue, Revenue, Granger causality, Causality (physics), Government expenditure, Economics, Government (linguistics), Government spending