Response of fiscal efforts to oil price dynamics

dc.contributor.authorAttahir Babaji Abubakar
dc.contributor.authorMansur Muhammad
dc.contributor.authorSamuel Mensah
dc.date.accessioned2024-01-08T06:45:49Z
dc.date.available2024-01-08T06:45:49Z
dc.date.issued2023-02-20
dc.description.abstractThis study investigates the response of Nigeria's government balance to oil price dynamics. The Linear and Non-Linear Autoregressive Distributed Lag models are employed for analysis. The findings of the study reveal that while the long run response of government balance to oil price dynamics is symmetric, the short run response is asymmetric. In the long run, an increase in oil price improves the government's fiscal position, signifying an increase in fiscal effort. Interestingly, while positive oil price shocks lead to a short run worsening of the government's fiscal position, indicating poor fiscal efforts, negative oil price shocks influence an improvement of government fiscal efforts. Further, although the operationalisation of fiscal rules worsens the government's fiscal position in the short run, it has a beneficial long run effect. These findings have far-reaching policy implications.
dc.identifier.doihttps://doi.org/10.1016/j.resourpol.2023.103353
dc.identifier.issn0301-4207
dc.identifier.urihttps://hdl.handle.net/20.500.14576/186
dc.language.isoen
dc.publisherElsevier
dc.rightsAttribution 4.0 International
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subjectOil price
dc.subjectFiscal balance
dc.subjectFiscal effort
dc.subjectFiscal policy
dc.subjectNigeria
dc.subjectNARDL
dc.subjectFiscal stance
dc.subjectAfrica
dc.titleResponse of fiscal efforts to oil price dynamics
dc.typeArticle
publicationvolume.volumeNumber81
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