An Evaluation of Fiscal Policy in Promoting Savings, Resource Mobilization and Investment in Nigeria
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FITC 164/166, Murtala Muhammed Way, Ebute-Metta, Lagos P.M.B. 1013, Apapa, Lagos Tel. : (234) -1- 8129474
Abstract
Description
The study seeks to evaluate the
effectiveness of fiscal policy in
enhancing savings, resource
mobilisation and investment in the
Nigerian capital market this is done
with the objective of identifyng the
extent to which fiscal policy-related
issues have contributed to the
underperformance of savings
mobilisation and investment in Nigeria.
A descriptive statistical approach
(trend analysis) was adopted to
evaluate how the economy performed
under different fiscal policy regimes,
and from the analysis, 'fiscal
hydrocephalus' was observed. In
addition, there were indications of
predominant idle savings, as well as
financial crowding-out. The study,
therefore, recommends some policy
measures to reform public enterprises
and, in particular, limit cash flow
problems in order to encourage release
of available domestic credits to the
private sector. The need for a
competitive domestic economy was
also recognised to be crucial for
encouraging savings, because no
meaningful savings and investment
can take place in an uncertain
environment.
Keywords
HB Economic Theory, HJ Public Finance