Public Borrowing and the Nigerian Economy: An Autoregressive Distributed Lag Model (ARDL) approach
Journal Title: International Journal Of Medical Science And Clinical Invention - Year 2017, Vol 4, Issue 5
Abstract
This study examined the effect of public borrowing on growth of the Nigerian economy over the period 1980 –2015. Employing the ARDL method in analysingdata sourced from the CBN and World Bank, the results indicated that external debt positively and significantly stimulated growth while domestic debt significantly retarded growth in Nigeria both in the long and short runs. Total debt services stock was found from our result to negatively and insignificantly affected economic growth while net foreign direct investment and foreign exchange reserves impacted on economic growth positively and were both significant at 5% level at lag 3. Though the goodness of fit was robust and reasonable in explaining changes in growth, the non-significance of the error correction term implies that economic growth reacts slowly to changes in public debts dynamics in Nigeria. Based on this results, the study recommends: reduction in local borrowing to enhance private investment, prudent utilization of borrowed funds to enhance results, better debt management strategies to ensure efficiency and borrowing from organization with low interest rate and longer term in order to reducethe burden on the economy and the growth of the economy
Authors and Affiliations
Ewubare, Denis; Nteegah, Alwell and Okpoi, Godspower
Keywords
Related Articles
- EP ID EP313154
- DOI 10.18535/ijsshi/v4i5.07
- Views 78
- Downloads 0
The Explication of Loyalty and Disloyalty in Farrokhzad’s "Captive"
Love relation, betrayal, and disloyalty are determined parts of the driven human's life and are regarded as social issues in human relations in groups. In confrontation of the genders among t...
Clinicoechocardiographic Study of Cardiac Abnormalities in Chronic Kidney Disease
Background: At every stage of chronic kidney disease, cardiovascular disease leads as the predominant cause of morbidity and mortality. There is a 10 – 200 fold increased risk for cardiovascular disease in patients with...
The Relationship Between the Duration of Cardiopulmonary Bypass (CPB) Use on Elevated Lactic Acid Post Operative of Open Heart Surgery at H. Adam Malik General Hospital Medan
Introduction. Cardiopulmonary bypass (CPB) is widely used to regulate systemic perfusion and oxygenation during open heart surgery. During the use of CPB machines may be at risk of disrupting tissue perfusion and also af...
The Roles of Islamic Education ,Towards Islamic Art and Culture
This study deals with the roles of Islamic education againts the development of Islamic art and culture. In order to achive the objective of the study, library research method was used and all the data taken from the b...
To Study the Equipment Management at District Hospital Leh:A Descriptive Study
The era of high technology and competitive world along with increasing expectation of patient and customer satisfaction demand many changes in the type of equipment for providing quality care in hospitals. Equipment main...