Impact Of Fiscal Deficit On Economic Performance Of Developing Countries: A Study Of Nigeria:- Oso Lucy U

ABSTRACT

This paper examines the economic impact offiscal deficit on economic performance ofdeveloping countries with reference from Nigeriafrom 1981 -2018. The objective ofthe study is to look at the impact offiscal deficit on the economic growth in Nigeria and to take a look at effect ofdomestic debt and external debt on the economic growth in Nigeria. Secondary data were collected based on the model used in the research work and unit root test was conducted on the data to test their stationarity, after which we perform co-integration test to analyze the long run relationship among the variables. The result obtained from our empirical analysis shows that there is a longrun relationship between fiscal deficit and economic performance in Nigeria within the period under study. The study therefore recommend that the government should encourage domestic investors through giving incentives like lower interest rate in order to boost investment as this will lead to improvement in thefiscal deficit position in Nigeria. Keywords: Fiscal Deficit, Economic Performance, Nigeria, Domestic Investors, Economic Growth