ABSTRACT

The study examined the impact of fiscal policy on the manufacturing sector output in Nigeria. The data used was secondary data, sourced from Central Bank of Nigeria statistical bulletin. Multiple regression of ordinary least square (OLS) technique of analysis was used. The result from the study revealed that government expenditure had negative and insignificant impact on the manufacturing sector output in Nigeria while, government tax revenue had positive and significant impact on the manufacturing sector output in Nigeria. Based on the findings, the study concluded that fiscal policy had significant impact on the manufacturing sector output in Nigeria. The study therefore recommended the following; That government should refocus and redirect government expenditure towards the manufacturing sector for production of goods that will enhance economic growth and government should increase its budgetary allocation on the capital expenditures that will accelerate or enhance economic growth in Nigeria through manufacturing sector output, that government should create more awareness on the importance of tax payment which is one of the major sources of government revenue, the process of tax collection should be convenient to the tax payers and the revenue accrued from tax payment should be judiciously utilized such as in construction of good roads that will enhance economic activities geared towards achieving economic growth in Nigeria through manufacturing sector output.

TABLE OF CONTENTS

Title page - - - - - - - - - - i

Declaration - - - - - - - - - - ii

Certification - - - - - - - - - - iii

Dedication - - - - - - - - - - iv

Acknowledgement - - - - - - - - - v

Table of Contents - - - - - - - - - vi

List of Tables - - - - - - - - - vii

Abstract - - - - - - - - - - viii

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study - - - - - - - 1

1.2 Statement of the Problem - - - - - - - 4

1.3 Objective of the Study - - - - - - - 5

1.4 Research Question - - - - - - - - 5

1.5 Research Hypotheses - - - - - - - 6

1.6 Scope of the Study - - - - - - - - 6

1.7 Significance of the Study - - - - - - - 6

1.8 Limitation of the Study - - - - - - - 7

1.9 Definition of Terms - - - - - - - - 7

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Conceptual Framework - - - - - - - 9

2.1.1 Types of Fiscal Policy - - - - - - - 12

2.1.2 Tools of Fiscal Policy - - - - - - - 13

2.1.2.1 Government Spending as a Fiscal Policy Tool - - - - 13

2.1.2.2   Government Tax Revenue as a Fiscal Policy Tool - - - 14

2.1.3 Functions of Fiscal Policy - - - - - - - 14

2.1.4 Objectives of Fiscal policy - - - - - - - 16

2.1.5 Limitation of Fiscal Policy Implementation - - - - 17

2.1.6 Fiscal Deficit in Nigeria and How to Solve it - - - - 17

2.1.6.1 Significance of Sources Covering Government Debts - - - 19

2.1.6.2 Deficit Reduction Techniques - - - - - - 20

2.2    Theoretical Framework - - - - - - - 21

2.2.1 Classical school of thought - - - - - - - 22

2.2.2 Keynesian School of Thought - - - - - - 22

2.2.3 Neoclassical school of thought - - - - - - 22

2.2.3.1 Managerial Theory of the Firm - - - - - - 23

2.2.3.2 The Savers-Spenders Theory - - - - - - 23

2.3 Empirical Review - - - - - - - - 24

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design - - - - - - - - 31

3.2 Sources of Data - - - - - - - - 31

3.3 Area of Study - - - - - - - - 31

3.4 Model Specification - - - - - - - - 32

3.5 Techniques of Analysis - - - - - - - 33

3.6 Decision Rule - - - - - - - - 33

3.7 Description of Variables - - - - - - - 33

3.7.1 Dependent variable - - - - - - - - 33

3.7.1.1 Manufacturing Sector Output (MSO) - - - - - 33

3.7.2 Independent Variables - - - - - - - 34

3.7.2.1 Government Expenditure (GEXP) - - - - - - 34

3.7.2.2 Government Tax Revenue (GTR) - - - - - - 34

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION 

                             OF FINDINGS

4.1 Data presentation - - - - - - - - 35

4.2 Regression Analysis and interpretation of Result - - - - 36

4.3 Test of Hypotheses - - - - - - - - 36

4.4 Discussion of findings - - - - - - - 37

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND     RECOMMENDATIONS

5.1 Summary of Findings - - - - - - - - 39

5.2 Conclusion - - - - - - - - - 39

5.3 Recommendations - - - - - - - - 40

REFERENCES