This study was set out
to evaluate the impact of government revenue on the growth of the Nigerian
economy. Using time-series data covering the period 1981 to 2018 and adopting
the ARDL framework, the study tested for both short-run and long-run relationship
including adjustment profile. It was found that economic growth is a positive
and significant function of oil revenue in Nigeria within the studied period.
Nonoil revenue was found to positively but non-significantly affect the growth
of the Nigerian economy. A long run cointegrating relationship was found
amongst the studied variables with the error correction model showing an 11%
adjustment speed from short-run disequilibrium to long run equilibrium. Based
on the finding, it is recommended that government should diversify the economy
to allow for enhanced revenue and growth.
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