Department of Economics

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Browsing Department of Economics by Author "Abdullateef Amin"

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    Effect of fiscal decentralisation on economic growth in Nigeria
    (Department of Economics, AL-Hikmah University, Ilorin, 2023) Abdullateef Amin; Musa Ilias Biala
    The relationship between fiscal decentralisation and economic growth has been a subject of ongoing scrutiny. Yet, empirical findings have failed to provide a consistent guide due to a lack of consensus. This study therefore investigated the relationship between fiscal decentralisation and economic growth, using time series data from 1993 to 2021. The motivation for this study arises from the imperative to bridge the gaps in the existing studies and provide empirical insights into the effect of fiscal decentralisation on economic growth. Understanding whether fiscal decentralisation acts as a catalyst or impediment to economic growth is essential for policymakers, researchers, and stakeholders seeking to formulate effective strategies for sustainable development. This study investigates the relationship between fiscal decentralization and economic growth using time series data from 1993 to 202 in Nigeria. The objectives include examining the impact of decentralizing fiscal expenditure, revenue, and deficits on economic growth. The study also distinguishes between the federal government and sub-national government components of these fiscal aspects. The neoclassical economic growth theory and Bhardhan and Mookherjee's decentralisation model, guide the study, which employs the OLS estimation method on data from the CBN, IMF and World Bank data sources. The study reveals that sub-national expenditure and revenue decentralisation have a greater pro-growth effect than their federal government counterparts and that fiscal deficit decentralisation has no effect on economic growth in Nigeria. Consequently, the study recommends that policymakers should promote government revenue and expenditure decentralisation to enhance economic growth.
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    Fiscal decentralisation and economic performance in Nigeria
    (Faculty of Management and Social Sciences, Kwara State University, 2024) Musa Ilias Biala; Abdullateef Amin
    The increasing burden on federal governments of many countries has necessitated decentralisation of social, financial and developmental responsibilities of government, which generated heated global debate as to the impact of decentralisation on the economy. Nigeria has undergone significant economic changes since gaining independence in 1960. Central to these changes has been the ongoing debate over fiscal decentralisation and its impact on the country's economic performance. This study therefore examines the impacts of fiscal decentralisation on economic performance in Nigeria, with time series data spanning a period of 42 years from 1981 to 2022. Using Autoregressive Distributed Lag model in which fiscal decentralisation was operationalised as the share of state expenditure in the total government expenditure, and economic performance as the growth rate of per-capita GDP and unemployment rate, the study finds that fiscal decentralisation had significant positive effects on unemployment and per-capita GDP. Fiscal decentralisation is, ipso facto, a significant determinant of economic performance in Nigeria. Therefore, fiscal responsibilities of the Nigerian government should be more decentralised so as to further reduce employment rate, increase per-capita income, and, by extension, enhance economic performances in Nigeria.