Selected Macroeconomic Determinants of Non-Profit Households Consumption Expenditure in Nigeria

Abstract

This study considers the impact of selected macroeconomic variables of final consumption expenditure of general government, changes in investment, net taxes on production and gross capital formation on the final consumption expenditure of non-profit households using quarterly time series data on household consumption from 2010q1 to 2015q4 obtained the CBN statistical bulletin. Stata 15 was employed in the
regression analysis. The result shows among others that less than 28% of the variation of the target variable is accounted for by the predictor variables with an R-squared of 0.4039 which suggests a positive but moderate relationship between the dependent variable FCENPH and the explanatory variables was found. In addition, only Cil (Changes in Investment) and NToP (Net Taxes on Production) as expected are statistically significant at the 5% level of significance. The result indicates that FCEGG and GCF do not necessarily determine non-profit households’ final consumption pattern in Nigeria. There is therefore the need to strengthen fiscal measures targeted at household to make it more inclusive and also streamline government spending to be more effective on households the study suggests.