IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 3 NO. 1 2017

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Causal Relationship between Revenue Allocation and Economic Growth of Niger Delta Area

Kelechukwu Stanley Ogbonna & Richard Chinye Osadume

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Abstract

This study determines the causal relationship between statutory allocations and economic growth of Niger Delta area. The study looks at how statutory allocations to the six states affect the economic growth (GDP) of the six Niger Delta states. Data were secondarily sourced from Federal Ministry of Finance of Nigeria and Canback Global Income Distribution database (C- GIDD); and were subjected to multiple regression analyses and Granger causality technique to determine the overall effect on Niger Delta and the six states respectively. The result of the study conclude that there is an insignificant relationship between statutory allocation and economic growth of Niger Delta area and recommend that statutory allocation to the region should be channelled to economic friendly projects that will cause efficient growth of the region

keywords:

Statutory allocation, growth, Niger Delta JEL Classification: O40 Economic Growth and Aggregate Productivity: Revenue allocation

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