Fiscal Reforms, Price Dynamics and the Socioeconomic Implications for Quality of Life in the Developing Nations of the Global South. Evidence from Nigeria

As structural adjustment policies and volatile commodity markets increasingly shape socio-economic outcomes, understanding their divergent impacts is crucial for effective policy formulation. This study investigates the interplay of fiscal reforms and price dynamics on the quality of life of citizens across developing nations in the Global South. Employing a vector autoregressive approach, the study utilizes time series data from Nigeria. The findings reveal two distinct and significant effects. First, fiscal reforms have a clear, significant positive impact on quality of life. This effect underscores the power of sound governance and equitable resource mobilization in fostering human development. Second, the impact of price dynamics is more complex because initial analysis indicates a slight negative impact on QoL, however, this effect quickly transitions to a net positive impact over the medium to long term. This suggests that while immediate price shocks may be absorbed or mitigated, the stability or eventual rise in commodity prices may signal broader economic vitality, leading to improved investment and ultimately, enhanced quality of life. The study concludes by advocating for fiscal reform implementation that is strategically timed to buffer populations against short-term price volatility, thereby maximizing the aggregate positive impact on quality of life in the global south.