The Effect of Fiscal Policy Shocks on Nigeria Economic Output: 1981 – 2015

Mary Bosede Olufayo


The study investigates the effect of fiscal policy shocks on economic output in Nigeria using ex-post facto research design.  The study was piloted via co-integration and vector Autoregressive (VAR) modeling spanned from 1981 -2015 indicates co-integrating relationship among the variable.  Thus, a further test to report the variable shocks response and their innovation adopts vector Autoregressive technique. The estimated result of the impulse response revealed that a shock to economic growth produce a negative effect on itself while variance decomposition revealed that GDP grow faster with robust tax system and sound infrastructural framework, However it recommends that the government through the central bank of Nigeria should apply appropriate fiscal measure to stabilize the economic output


Fiscal Policy, Economic Output, Co-integration and Vector Autoregressive.

Full Text:



  • There are currently no refbacks.

Copyright (c) 2018 Edupedia Publications Pvt Ltd

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.


EduPedia Publications Pvt Ltd, D-351, Prem Nagar-2, Suleman Nagar, Kirari, Nagloi, New Delhi PIN-Code 110086, India Through Phone Call us now: +919958037887 or +919557022047

All published Articles are Open Access at

Paper submission: or


Mobile:                  +919557022047 & +919958037887


Journals Maintained and Hosted by

EduPedia Publications (P) Ltd in Association with Other Institutional Partners

Pen2Print and IJR are registered trademark of the Edupedia Publications Pvt Ltd.