摘要：It is believed that state and local governments, been closer to the people will be more responsive to the particular preferences of their constituencies through better ways of providing services that will increase economic welfare is the justification of federalism. It can be fiscal (in which funds are not only transferred from national to the sub-national but also power of raising funds is also given). Nigeria's experience with fiscal federalism which started in 1954 has not produced the desired impact on development indexes despite continuous increase in revenue generation and allocations in accordance with section 162 of the 1999 Nigerian constitution. This prompted the research to examines the impact of fiscal federalism on Nigeria economic development over the period 1981 to 2017. The study measures fiscal federalism in terms of internally generated revenue of states and allocations to the federal, states and local governments and Nigeria economic development to key development indexes such as per capita income, literacy rate and infant mortality rate. Data for the study were collected from Nigerian Bureau of Statistics (NBS), data achieves of Revenue Mobilization Allocation and Fiscal Commission, Statistical bulletin of the Central Bank of Nigeria and UNDP report. Multiple regression model was used and various tests were conducted. Such tests are unit root test for stationarity of the variable through Augmented Dickey-Fuller and CUSUM test for parameters stability. Empirical result indicates that there is, indeed a long-run relationship between fiscal federalism and Nigeria development indexes (measured in terms of per capita income, literacy rate and infant mortality rate). All variables measure of fiscal federalism had a positive relationship with per capita income excluding revenue allocated to the LGA’s, that of mortality rate had a negative relationship with the variables measure of fiscal federalism while that of literacy rate has a mixed relationship with fiscal federalism. There is, indeed, a connection between fiscal federalism and macroeconomic performance in Nigeria over the study period. However, the study recommends that for fiscal federalism to achieve the desired development outcome in terms of higher literacy rate, increases in per capita income and declining mortality rate of infant local government sovereignty is to be full granted by reviewing subsection (4)-(8) of section 162 of the constitution and the tax jurisdiction power between the state and federal government should be reviewed.
关键词：Federalism; Fiscal Federalism; Economic Development
