摘要：There has been considerable debate about the relationship between fiscal deficits and economic growth. Although macroeconomic theory postulates that fiscal deficits stimulate economic growth, empirical research has been less conclusive about this relationship. This paper examines this controversial relationship within the Nigerian context, using data over the period, 1970 – 2006. We adopted a modeling technique that incorporates cointegration and structural analysis. The results indicate that (i) fiscal deficit affects economic g rowth negatively, with an adjustment lag in the system; (ii) a one percent increase in fiscal deficit is capable of diminishing economic growth by about 0.023 percent; and (iii) there is a strong negative association between government consumption expenditure and economic growth
关键词：Fiscal Deficits; Economic Growth; Cointegration; Government Expenditure; Nigeria.
