INCLUSIVE GROWTH IMPACTS OF RECENT FISCAL POLICY TRENDS IN NIGERIA: An Incidence Analysis
- Robert C. Asogwa
- ( paper pages. 1 - 32 )
Abstract
International evidence suggests that an important instrumentavailable to government for bringing about inclusive growth is fiscalpolicy, an instrument which is rarely applied in many countries.Growing concern about the rising inequality in Nigeria and otherdeveloping economies is prompting new discussions on the use offiscal policy and instruments to foster inclusive growth. The keyobjective of this paper is therefore to assess whether or not, recentfiscal policy trends in Nigeria affect inclusive growth (measured asbenefits and access across different quintiles). First, we conduct adecomposition of public expenditure in Nigeria so as to compare theallocation to inequality-reducing sectors (education, health, socialtransfers/services) with other sectors over a period of time. Second,we estimate and compare the benefit incidence of the expenditure oneducation for all the income quintiles. Third, we measure theincidence of the different tax revenue components in Nigeria toascertain whether they are progressive or regressive and theirredistributive impact. The findings show that the current structures ofpublic expenditure and taxes are not progressive enough and havelimited powers to reduce inequality and enhance inclusive growth.
Citation
Robert C. Asogwa.
2019.
"INCLUSIVE GROWTH IMPACTS OF RECENT FISCAL POLICY TRENDS IN NIGERIA: An Incidence Analysis"
The Nigerian Journal of Economic and Social Studies,
61 (2): 1 - 32.
JEL Classification
E62, H22
