Fiscal Decentralization and Economic Growth in Nigeria: A Re-examination
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Abstract
This study sought to empirically examine the relationship between fiscal decentralization and economic growth in Nigeria and to see if the reverse holds for Nigeria as found by other scholars for countries and regions around the world. It achieved this by re-examining fiscaldecentralization-economic-growth interaction in Nigeria, using fiscal disaggregated data. It employed basic OLS and Error Correction Mechanism (ECM). It was found, amongst other issues, that fiscal decentralization does not directly impact on economic growth, but the positives of decentralization could be transmitted through efficient economic management process, which may be a product of effectively-managed fiscal decentralization processes.
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