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June 2024

Shifting Paradigms: Exploring the Tapestry of Global Assistance and Its Resonance within Nigeria's Fiscal Framework"

1Dr. Mrs. Nkem Ogechukwu Maureen, 2Angelonu (Ejelonu) Henry Onyebuchi
1UNIVERSITY ADDRESS: Department of Economics, College of Management Science, Michael Okpara University of Agriculture, Umudike, Abia State, Nigeria.
2National Research University, Saint Petersburg Department of Economics and Management
DOI : https://doi.org/10.58806/ijirme.2024.v3i6n18

Abstract

This study critically explores the Tapestry of Global Assistance and Its Resonance within Nigeria's Fiscal Framework from 1981 to 2021, the study objectively explored the degree to which various forms of foreign aid—such as official development assistance, foreign grants, and technical aid—impact public expenditure growth within a shifting economic paradigm. Employing statistical measures such as the Coefficient of Determination (R²), F-statistics, and the Durbin-Watson statistic. Incorporating variables such as foreign technical cooperation (FTECH), foreign grants (FGRANT), official development assistance (FODA), multilateral foreign aids (MFAID), and exchange rates (EXR), the study employs time-series data from the World Bank Development Indicators and a modified regression approach. The analysis seeks to delineate the complex dynamics between external financial inputs and internal fiscal outcomes over the period from 1981 to 2021. The findings reveal a nuanced landscape where foreign aid, though impactful, does not singularly dictate fiscal changes, suggesting a need for broader, more inclusive economic strategies that leverage both external and internal resources. Augmented Dickey-Fuller (ADF) tests confirm the stationarity of these variables, validating their reliability in modeling economic impacts. The ARDL bound test results indicate no long-term sustainable relationship between foreign aid components and public expenditure growth, pointing to a more nuanced interaction between foreign aid inflows and Nigeria’s fiscal strategies, whether expansive or restrictive.

Keywords:

Nigeria's Fiscal Framework, Foreign Technical Cooperation, Foreign Grants, Official Development Assistance, Multilateral Foreign Aids, Economic Strategy

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