Federation Account Allocation in Nigeria: Implication for Growth

Abstract

This paper considers whether there is statistical growth evidence of federal government allocation share, state governments’ allocation share, and state governments’ internally generated revenue in Nigeria. Time-series data going back to 1970 was used. After studying the time-series properties of these variables for stationarity, a dynamic model was estimated. The regression result suggests that, in the long run, growth can be influenced positively by the share of the federal government allocation and the state governments’ internally generated revenue. In the contrary, result suggests that state governments’ allocation share has negative impact on economic. Keywords: Growth; Government; Revenue; dynamic model; correlation