The broad objective of the study is to analyze the impact of fiscal policy on economic stabilization in Nigeria using annual time series data from Central Bank of Nigeria Statistical Bulletin for the period of 1980 to 2014. This investigation is imperative because in Nigeria, government expenditure has continued to rise due to the huge receipts from production and sales of crude oil, and the increased demand for public goods. Unfortunately, rising government expenditure has not translated to meaningful growth and development, as Nigeria ranks among the poorest countries in the world. In an attempt to achieve the broad objective of this study, an ordinary least square (OLS) econometric model was formulated to capture the relationship between fiscal policy and economic stabilization in Nigeria. In the model, economic stabilization as proxy by inflation was the dependent variable while government expenditure, taxation, fiscal deficit and money supply were the independent variables. The data for the analysis of the model were collected from Central Bank of Nigeria Statistical Bulletin for the period of 1994 to 2014. Ordinary least square multiple regression approach was adopted for the estimation of the regression model formulated and the result of the model was facilitated using the Econometric View (E-View). The result of the analysis at 5% level of significance shows clearly that government expenditure exert a significant negative effect on economic stabilization in Nigeria while taxation, fiscal deficit and money supply do not impact economic stabilization in Nigeria. Among others, the study recommends that government needs to demonstrate high level of commitment to policy consistency and implementation
TABLE OF CONTENTS
CHAPTER ONE – INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Justification of the Study
1.6 Sources of Data and Methodology
1.7 Scope and Plan of the Study
CHAPTER TWO – LITERATURE REVIEW
2.1. Conceptual Review
2.1.1 Fiscal policy
2.1.2 Fiscal Policy Instruments
2.1.3 Fiscal Policy and its Objectives
2.1.4 Economic Stabilization
2.2 Theoretical Review
2.2.1 Keynesian Theory
2.2.2 The Peacock and Wiseman Theory (1890-1955)
2.2.3 The Savers-Spenders Theory
2.3 Empirical Review
2.3.1 Evidence from Developed Countries
2.3.2 Evidence from Developing Countries
2.3.3 Evidence from Nigeria
CHAPTER THREE – RESEARCH METHODOLOGY
3.1 Nature and Sources of Data
3.2 Model Specification
3.3 A priori Expectation
3.4 Research Hypothesis
3.5 Method of Analysis
3.6 Decision Criteria
CHAPTER FOUR – DATA PRESENTATION AND ANALYSIS
4.1 Presentation of Data
4.3 Presentation of Regression Result
4.4 Interpretation of Result
CHAPTER FIVE -SUMMARY, CONCLUSION, AND RECOMMENDATIONS
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendations
REFERENCES
APPENDIX
