KOGI STATE

Faculty of Management Sciences

Journal of MANAGEMENT

ISSN: 3212 - 3122

Anochie, Uzoma C.; Uzuegbu, Joshua & Ekeagwu, Innocent

Abstract

This research investigated the effects of automatic stabilizers on the output of the manufacturing sector in Nigeria from 1981 to 2021 with the objectives and research questions that guided the study. The specified model was estimated using the Autoregressive Distributive Lag Model to determine the level of impact that one variable has on the other. From the findings it is seen that total government expenditure (LTGXP) positively contributes to manufacturing sector performance (LMSP) in the long run than tax revenue (LTXRV) in Nigeria. The conclusion drawn from this study is that total government expenditure and gross fixed capital formation are determinants of manufacturing sector performance in Nigeria while tax revenue is a weak determinant of manufacturing sector performance in Nigeria in the presence of other internal and external macro-economic shocks. Based on our results, it is recommended that fiscal policy initiatives must be redirected to make Nigeria a producer nation through the manufacturing sector, which will contribute to economic growth and development.

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Keywords

Automatic Stabilizer, Manufacturing Sector, Government Expenditure, Fiscal Policy Initiatives

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