Year 2016, Volume 6, Issue 4, Pages 1930 - 1936 2016-09-01

Government Spending Pattern and Macroeconomic Stability: A Vector Autoregressive Model

Joseph I. Amuka [1] , Miracle O. Ezeoke [2] , Fredrick O. Asogwa [3]

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Macroeconomic stability has not kept pace with the pattern of Public sector spending in majority of the developing countries. Unfortunately, past studies have mainly focused on the consequences of aggregate government spending on macroeconomic variables, or at most disaggregated government spending into capital and recurrent. In order to use government spending to effectively bring macroeconomic stability in developing countries, government spending must be decomposed according to sectors. Only very few studies have done this. We made effort to find out the components of government spending that cause macroeconomic instability in Nigeria, using Vector Autoregressive (VAR) Model. Result reveals government capital expenditure on economic services is the major cause of inflation in Nigeria. Impulse response function shows inflation will respond very sharp and positively to any shock in government capital spending in economic sector and social and community services. Therefore, if government must pursue economic stability through inflation control, she must re-examine her investment in those sectors.
Government, Spending, Pattern, Macroeconomic, Stability
Other ID JA63YS43NM
Journal Section Research Article
Authors

Author: Joseph I. Amuka

Author: Miracle O. Ezeoke

Author: Fredrick O. Asogwa

Dates

Publication Date: September 1, 2016

Bibtex @ { ijefi354740, journal = {International Journal of Economics and Financial Issues}, issn = {}, eissn = {2146-4138}, address = {İlhan ÖZTÜRK}, year = {2016}, volume = {6}, pages = {1930 - 1936}, doi = {}, title = {Government Spending Pattern and Macroeconomic Stability: A Vector Autoregressive Model}, key = {cite}, author = {Amuka, Joseph I. and Ezeoke, Miracle O. and Asogwa, Fredrick O.} }
APA Amuka, J , Ezeoke, M , Asogwa, F . (2016). Government Spending Pattern and Macroeconomic Stability: A Vector Autoregressive Model. International Journal of Economics and Financial Issues, 6 (4), 1930-1936. Retrieved from http://dergipark.org.tr/ijefi/issue/32045/354740
MLA Amuka, J , Ezeoke, M , Asogwa, F . "Government Spending Pattern and Macroeconomic Stability: A Vector Autoregressive Model". International Journal of Economics and Financial Issues 6 (2016): 1930-1936 <http://dergipark.org.tr/ijefi/issue/32045/354740>
Chicago Amuka, J , Ezeoke, M , Asogwa, F . "Government Spending Pattern and Macroeconomic Stability: A Vector Autoregressive Model". International Journal of Economics and Financial Issues 6 (2016): 1930-1936
RIS TY - JOUR T1 - Government Spending Pattern and Macroeconomic Stability: A Vector Autoregressive Model AU - Joseph I. Amuka , Miracle O. Ezeoke , Fredrick O. Asogwa Y1 - 2016 PY - 2016 N1 - DO - T2 - International Journal of Economics and Financial Issues JF - Journal JO - JOR SP - 1930 EP - 1936 VL - 6 IS - 4 SN - -2146-4138 M3 - UR - Y2 - 2019 ER -
EndNote %0 International Journal of Economics and Financial Issues Government Spending Pattern and Macroeconomic Stability: A Vector Autoregressive Model %A Joseph I. Amuka , Miracle O. Ezeoke , Fredrick O. Asogwa %T Government Spending Pattern and Macroeconomic Stability: A Vector Autoregressive Model %D 2016 %J International Journal of Economics and Financial Issues %P -2146-4138 %V 6 %N 4 %R %U
ISNAD Amuka, Joseph I. , Ezeoke, Miracle O. , Asogwa, Fredrick O. . "Government Spending Pattern and Macroeconomic Stability: A Vector Autoregressive Model". International Journal of Economics and Financial Issues 6 / 4 (September 2016): 1930-1936.
AMA Amuka J , Ezeoke M , Asogwa F . Government Spending Pattern and Macroeconomic Stability: A Vector Autoregressive Model. IJEFI. 2016; 6(4): 1930-1936.
Vancouver Amuka J , Ezeoke M , Asogwa F . Government Spending Pattern and Macroeconomic Stability: A Vector Autoregressive Model. International Journal of Economics and Financial Issues. 2016; 6(4): 1936-1930.