Fiscal Policy and Small-Medium Scale Enterprise, Implication on Economic Growth in Nigeria

Ogunjobi, J. O. and Oladipo, O. A. and Olushola, F.O. (2024) Fiscal Policy and Small-Medium Scale Enterprise, Implication on Economic Growth in Nigeria. International Journal of Humanities Social Science and Management, 4 (4). pp. 12-20. ISSN 3048-6874

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Abstract

ABSTRACT The study evaluates the implications of fiscal policy and small-medium scale enterprise on economic growth in Nigeria for the period of 1993-2022. Time series data were used while Johansen co-integration test was employed to test the long-run effects of fiscal policy and SMEs on economic growth.The result of the findings showed that government expenditure has a positive impact on economic growth in Nigeria, while SMEs has a negative impact on economic growth in Nigeria. Furthermore, the result of the dependent variable and independent variables showed that labour and fiscal policy (government expenditure) have positive relationship with economic growth while gross fixed capital formation, the employment generation growth rate and the deposit bank loans have negative relationship with the economic growth (proxy by the real gross domestic product). Based on these findings, the paper concludes that the government should enhance infrastructure to increase employment rate in the economy and also, government should introduce target incentives and policy measures to motivate an increase in the lending to SMEs.

Item Type:	Article
Uncontrolled Keywords:	Fiscal policy, Small and medium enterprises, deposit bank loan, economic growth.
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HJ Public Finance
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	Mr OLUFEMI OLADIPO
Date Deposited:	23 Jan 2025 16:31
Last Modified:	23 Jan 2025 16:31
URI:	https://eprints.lmu.edu.ng/id/eprint/5591

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