An Analysis of the Effect of Fiscal Decentralisation on Eonomic Growth in Nigeria
Abachi Terhemen Philip, Salamatu Isah

Abstract
The study analyses the effects of fiscal decentralization on the growth of the Nigerian economy from 1970 to 2009. Conflicting findings from empirical works on the subject prompted this study. A Barro type growth model, used by Aigbokhan (1999) was adopted and used in the study. Three measures of fiscal decentralization were defined and built in the model. Ordinary Least Square Method was applied to estimate the parameters of the model. The result shows that the variations in economic growth in the country are sufficiently explained by the variables in the model. From the three measures of fiscal decentralization used in the study, the result indicated that lower levels of governments depend heavily on the federal government for revenue. We recommend a constitutional amendment to devolve some of the high revenue yielding sources to the lower levels of government to improve their internal revenue base and for the government to strengthen measures for fighting corruption in public offices.

Full Text: PDF