International Journal of Research and Innovation in Social Science
This study examined the impact of public debt on economic growth in Nigeria using annual secondar... more This study examined the impact of public debt on economic growth in Nigeria using annual secondary data from 1981 to 2021 and the Auto-Regressive Distributed Lag technique. The variables used in the study were real gross domestic product (RGDP), which is the proxy for economic growth, gross fixed capital formation (GFCF), external debt (EXDT), exchange rate (EXCR), domestic debt (DODT) and debt service repayment (DSRT). The results of the findings show that the past value of RGDP, GFCF, EXDT and DSRT have positive impact on economic growth in Nigeria. Also, EXCR and DODT have negative impact on economic growth in Nigeria. Judging from the p values, the lagged value of RGDP, GFCF, EXDT and DSRT are statistically significant as their p values are lower than critical values at 5 percent level of significance, while EXCR and DODT have no significant impact on economic growth in Nigeria. Based on the findings, the study recommends that government should formulate and effectively implemen...
International Journal of Research and Innovation in Social Science
Public debt is a vital instrument for governments to fund public expenditure. This paper examined... more Public debt is a vital instrument for governments to fund public expenditure. This paper examined the public debt sustainability and economic growth in Nigeria using annual time series data from 1981 to 2021 and the generalized method of moments (GMM) technique. The variables used in the study include; Real GDP, external debt, domestic debt, debt servicing and government consumption. To capture the period the country was given debt relieve fund we used debt relief dummy. The effect of recession on the economy was captured using recession dummy. The empirical result showed that debt overhang exists with inverted U-shaped debt Laffer curve. The optimum public debt threshold range is 30% – 40% while the threshold benchmark is 36% for composite debt stock and 33% for external debt stock. Based on the findings, the paper recommends that Nigerian government should ensure optimal utilization of external debt to avoid crowding out of investments and also the existence of debt overhang.
Journal of Advanced Research in Economics and Administrative Sciences
Purpose: This paper investigated the effect of interest rate on investment and growth on countrie... more Purpose: This paper investigated the effect of interest rate on investment and growth on countries under the West African Monetary Zone (Gambia, Sierra Leone, Nigeria, Ghana, Guinea and Liberia) with the use of Panel data analysis from 2000 to 2021. Approach/Methodology/Design: The study uses the Levin and Lin test to confirm the unit root of the selected variables. The stationarity shows that real interest rate, exchange rate, inflation and term of trade are integrated at levels and real gross domestic product, investment, and savings are integrated at order one. Also with the use of Kao Panel Co-integration test, it was confirm that there exists a long run relationship among the variables. Findings: The study revealed that real interest rate shows a non-significant relationship to both investment and growth in the countries under the West African Monetary Zone (WAMZ). According to the study, these countries need to reduce their real interest rates in order to increase investme...
Journal of Advanced Research in Economics and Administrative Sciences
Purpose: The aim of this paper is to examine the impact of key fiscal policy variables (governmen... more Purpose: The aim of this paper is to examine the impact of key fiscal policy variables (government capital expenditure, government revenue, government recurrent expenditure, external debt and tax revenue) on foreign direct investment and to check if there exists a causal relationship between fiscal policy and Foreign direct investment in Nigeria. Approach/Methodology/Design: Times series Econometrics methods such as Vector Autoregressive (VAR) Model, unit root test, cointegration test, Lag selection test and Granger causality test on annual data obtained from CBN statistical bulletin and National Bureau of Statistics spanning 1985 to 2020 were used. Findings: The results of the unit root test showed that FDI, government capital expenditure, government revenue and tax were stationary at order one (1), while recurrent expenditure and external debt were stationary at order zero (0). Also there exists co-integration among all the variables in the model. The findings showed that fiscal ...
International Journal of Research and Innovation in Social Science
This study examined the impact of public debt on economic growth in Nigeria using annual secondar... more This study examined the impact of public debt on economic growth in Nigeria using annual secondary data from 1981 to 2021 and the Auto-Regressive Distributed Lag technique. The variables used in the study were real gross domestic product (RGDP), which is the proxy for economic growth, gross fixed capital formation (GFCF), external debt (EXDT), exchange rate (EXCR), domestic debt (DODT) and debt service repayment (DSRT). The results of the findings show that the past value of RGDP, GFCF, EXDT and DSRT have positive impact on economic growth in Nigeria. Also, EXCR and DODT have negative impact on economic growth in Nigeria. Judging from the p values, the lagged value of RGDP, GFCF, EXDT and DSRT are statistically significant as their p values are lower than critical values at 5 percent level of significance, while EXCR and DODT have no significant impact on economic growth in Nigeria. Based on the findings, the study recommends that government should formulate and effectively implemen...
International Journal of Research and Innovation in Social Science
Public debt is a vital instrument for governments to fund public expenditure. This paper examined... more Public debt is a vital instrument for governments to fund public expenditure. This paper examined the public debt sustainability and economic growth in Nigeria using annual time series data from 1981 to 2021 and the generalized method of moments (GMM) technique. The variables used in the study include; Real GDP, external debt, domestic debt, debt servicing and government consumption. To capture the period the country was given debt relieve fund we used debt relief dummy. The effect of recession on the economy was captured using recession dummy. The empirical result showed that debt overhang exists with inverted U-shaped debt Laffer curve. The optimum public debt threshold range is 30% – 40% while the threshold benchmark is 36% for composite debt stock and 33% for external debt stock. Based on the findings, the paper recommends that Nigerian government should ensure optimal utilization of external debt to avoid crowding out of investments and also the existence of debt overhang.
Journal of Advanced Research in Economics and Administrative Sciences
Purpose: This paper investigated the effect of interest rate on investment and growth on countrie... more Purpose: This paper investigated the effect of interest rate on investment and growth on countries under the West African Monetary Zone (Gambia, Sierra Leone, Nigeria, Ghana, Guinea and Liberia) with the use of Panel data analysis from 2000 to 2021. Approach/Methodology/Design: The study uses the Levin and Lin test to confirm the unit root of the selected variables. The stationarity shows that real interest rate, exchange rate, inflation and term of trade are integrated at levels and real gross domestic product, investment, and savings are integrated at order one. Also with the use of Kao Panel Co-integration test, it was confirm that there exists a long run relationship among the variables. Findings: The study revealed that real interest rate shows a non-significant relationship to both investment and growth in the countries under the West African Monetary Zone (WAMZ). According to the study, these countries need to reduce their real interest rates in order to increase investme...
Journal of Advanced Research in Economics and Administrative Sciences
Purpose: The aim of this paper is to examine the impact of key fiscal policy variables (governmen... more Purpose: The aim of this paper is to examine the impact of key fiscal policy variables (government capital expenditure, government revenue, government recurrent expenditure, external debt and tax revenue) on foreign direct investment and to check if there exists a causal relationship between fiscal policy and Foreign direct investment in Nigeria. Approach/Methodology/Design: Times series Econometrics methods such as Vector Autoregressive (VAR) Model, unit root test, cointegration test, Lag selection test and Granger causality test on annual data obtained from CBN statistical bulletin and National Bureau of Statistics spanning 1985 to 2020 were used. Findings: The results of the unit root test showed that FDI, government capital expenditure, government revenue and tax were stationary at order one (1), while recurrent expenditure and external debt were stationary at order zero (0). Also there exists co-integration among all the variables in the model. The findings showed that fiscal ...
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