TO GET THE COMPLETE JOURNAL/THESIS FOR TOPIC BELOW,
CALL: 08168759420, 08068231953
WHATSAPP: 08137701720
THE ASSESSMENT OF THE EFFECTS OF FISCAL POLICY ON UNEMPLOYMENT AND INFLATION REDUCTION: THE CASE OF NIGERIA
Abstract: The study set out to ascertain the influence of fiscal policy on unemployment and inflationreduction in Nigeria. The dependent variables wereunemployment rate and inflationrate while federal government capital expenditure, petroleum profit tax, company income tax and custom and excise duty were the independent variables. Data was sourced from Central Bank of Nigeria Statistical Bulletin (2014); World Development Indicator (2013); IMF World Economic Outlook (2013) amongst others.The study employed Autoregressive Distributed Lag (ARDL) bounds testing which is based on the estimation of an Unrestricted Error Correction Model. The findings revealed the following among others: federal government capital expenditure (a tool of fiscal policy) in the first and second year does not reduce unemployment rate but it does significantly in the third year. Petroleum profit tax and company income tax do not significantly reduce inflation but only custom and excise duty did. The joint effect of all the tax variables was significant in inflation control. On this basis, the following recommendations were made among others: there is the need for massive capital expenditure in productive ventures in Nigeria, especially on agriculture; effective tax design is imperative so as to capture every individual in Nigeria. Keywords: assessment, fiscal policy, inflation, unemployment