International Journal of Business and Management Review (IJBMR)

EA Journals

Government Expenditure

Fiscal Policies and Economic Recovery from Financial Crises and Pandemic Crises of Selected African Countries (Published)

Fiscal policies play a pivotal role in navigating economic recovery, particularly amidst financial and pandemic crises in African countries. This study evaluates the influence of the unemployment rate, government expenditure, and government capital expenditure on economic recovery in selected African nations. The objectives include assessing the significance of these factors in the context of crises and testing hypotheses regarding their relationships with economic recovery. Drawing from the Keynesian economic theory and Structural Adjustment Theory, the study provides a theoretical framework for understanding the efficacy of fiscal interventions. Using a deductive approach and multiple regression analysis, data from ten African countries spanning from 1981 to 2023 are analyzed. The findings underscore the critical role of the unemployment rate and government capital expenditure in driving economic recovery, while general government expenditure shows minimal direct impact. Policymakers are urged to focus on targeted investments in capital projects and initiatives to address unemployment rates, thereby fostering sustainable economic growth and resilience.

Keywords: Economic Recovery., Financial Crises, Fiscal Policies, Government Expenditure, government capital expenditure, non-tax revenue, taxation, unemployment rate

Impact of Fiscal Policy on the Manufacturing Sector Output in Nigeria: An Error Correction Analysis (Published)

There has been a growing concern on the role of fiscal policy on the output and input of manufacturing industry in Nigeria, despite the fact that the government had embarked on several policies aimed at improving the growth of Nigerian economy through the contribution of manufacturing industry to the economy and capacity utilization of the sector. The aim of this study is to examine the impact of fiscal policy on the manufacturing sector output in Nigeria. Empirical evidence from the developed and developing economies has shown that fiscal and monetary policies have the capacity to influence the entire economy if it is well managed. An ex-post facto design (quantitative research design) was used to carry out this study. The results of the study indicate that government expenditure significantly affect manufacturing sector output based on the magnitude and the level of significance of the coefficient and p-value and there is a long-run relationship between fiscal policy and manufacturing sector output. The implication of this finding is that if government did not increase public expenditure and its implementation, Nigerian manufacturing sector output will not generate a corresponding increase in the growth of Nigerian economy. It is the recommendation of researcher that the expansionary fiscal policies should be encouraged as they play vital role for the growth of the manufacturing sector output in Nigeria; that fiscal policy should be given more priority attention towards the manufacturing sector by increasing the level of budget implementation, which will enhance aggregate spending in the economy; and consistent government implementation will contribute to the increase performance of manufacturing sector.

Keywords: Capacity Utilization, Co-integration, Error Correction Model, Government Expenditure, Government Tax Revenue, Manufacturing sector, Output

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