%0 Journal Article
%T An Investigation of Causal Relationship Between Fiscal Deficits, Economic Growth and Money Supply in Nigeria (1970-2009)
%A Abu Maji
%A Ali S. Yusufu Bagaji
%A Moses Shaibu Etila
%A Jafa¡¯aru Garba Sule
%J Canadian Social Science
%D 2012
%I Canadian Academy of Oriental and Occidental Culture
%R 10.3968/j.css.1923669720120802.1005
%X This study posits to investigate the relationship between fiscal deficits, economic growth and money supply in Nigeria. In Nigeria, huge fiscal deficits had been recorded over some years. What has been the nature of the relationship between fi scal defi cits, economic growth and money supply in Nigeria? To answer this question, Granger causality test was conducted to see whether fi scal defi cits granger cause economic growth and money supply or economic growth and money supply granger cause fiscal deficits. The results show that fiscal deficits granger causes economic growth and broad money supply in Nigeria. This implies that fiscal deficits positively affect economic growth and money supply in Nigeria. It is therefore recommended that fiscal deficits should be undertaken with efficient and well-executed plan for economic development. Furthermore, fi scal and monetary policies should be coordinated in such a way that both the public or private sector of the economy should not be handicapped due to shortage of finance and at the same time, infl ation is checked in the economy. Key words: Fiscal defi cits; Economic growth; Money supply; Public expenditure; Public revenue; Granger causality R¨¦sum¨¦ Cette ¨¦tude est dans le but d¡¯¨¦tudier la relation entre les d¨¦fi cits budg¨¦taires, la croissance ¨¦conomique et la masse mon¨¦taire au Nig¨¦ria. Au Nigeria, d¡¯¨¦normes d¨¦ficits budg¨¦taires ont ¨¦t¨¦ enregistr¨¦s en quelques ann¨¦es. Quelle a ¨¦t¨¦ la nature de la relation entre les d¨¦fi cits budg¨¦taires, la croissance ¨¦conomique et la masse mon¨¦taire au Nig¨¦ria? Pour r¨¦pondre ¨¤ cette question, le test de causalit¨¦ de Granger a ¨¦t¨¦ men¨¦ afi n de voir si les d¨¦fi cits budg¨¦taires granger provoquer la croissance ¨¦conomique et l¡¯offre de l¡¯argent ou la croissance ¨¦conomique et l¡¯offre de monnaie granger provoquer des d¨¦ficits budg¨¦taires. Les r¨¦sultats montrent que l¡¯exercice granger d¨¦fi cits provoque la croissance ¨¦conomique et de l¡¯offre mon¨¦taire au sens large du Nigeria. Cela implique que les d¨¦fi cits budg¨¦taires infl uer positivement sur la croissance ¨¦conomique et l¡¯offre de monnaie au Nigeria. Il est donc recommand¨¦ que les d¨¦ficits budg¨¦taires devraient ¨ºtre entrepris au plan efficace et bien ex¨¦cut¨¦e pour le d¨¦veloppement ¨¦conomique. En outre, les politiques budg¨¦taires et mon¨¦taires doivent ¨ºtre coordonn¨¦s de mani¨¨re ¨¤ ce que le secteur public ou priv¨¦ de l¡¯¨¦conomie ne devrait pas ¨ºtre handicap¨¦ en raison d'un manque de finances et dans le m¨ºme temps, l¡¯inflation est v¨¦rifi¨¦e dans l¡¯¨¦conomie. Mots cl¨¦s: D¨¦ficits budg¨¦taires; La Croissance ¨¦conomique; La masse mon
%K Fiscal defi cits
%K Economic growth
%K Money supply
%K Public expenditure
%K Public revenue
%K Granger causality
%U http://cscanada.net/index.php/css/article/view/2451