EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN NIGERIA
Public debt is a critical tool for governments to fund their spending, particularly when it is difficult to raise taxes and reduce public expenditure. However, this process has left most governments with massive outstanding debts, hence, the need to examine the effect of public debt on economic gro...
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| Format: | Article |
| Language: | English |
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Kwara State University, Malete Nigeria
2023-11-01
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| Series: | Malete Journal of Accounting and Finance |
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| Online Access: | https://majaf.com.ng/index.php/majaf/article/view/60 |
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| author | Biliqees Ayoola ABDULMUMIN |
| author_facet | Biliqees Ayoola ABDULMUMIN |
| author_sort | Biliqees Ayoola ABDULMUMIN |
| collection | DOAJ |
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Public debt is a critical tool for governments to fund their spending, particularly when it is difficult to raise taxes and reduce public expenditure. However, this process has left most governments with massive outstanding debts, hence, the need to examine the effect of public debt on economic growth in Nigeria. The study employed secondary data, which was sourced from Central Bank of Nigeria Statistical bulletin over a period of 33 years from 1987 to 2020. The study adopted expost facto research design. The study also employed the Autoregressive distributive lag (ARDL). The result of the study revealed that external debt is a positive determinant of economic growth in Nigeria with a p-value of 0.0255. The study also revealed that domestic debt is a negative significant determinant of economic growth in Nigeria with a coefficient value of 0.0005. The study concludes that public debt has significant effect on economic growth in Nigeria. The study therefore recommends that government of Nigeria should make more use of external debt than domestic debt because of the low interest of external debt to domestic debt which will help in reducing the debt burden.
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| format | Article |
| id | doaj-art-2ba76c4be0c747b29bb33869aa50eb69 |
| institution | Kabale University |
| issn | 2735-9603 |
| language | English |
| publishDate | 2023-11-01 |
| publisher | Kwara State University, Malete Nigeria |
| record_format | Article |
| series | Malete Journal of Accounting and Finance |
| spelling | doaj-art-2ba76c4be0c747b29bb33869aa50eb692025-02-10T23:06:38ZengKwara State University, Malete NigeriaMalete Journal of Accounting and Finance2735-96032023-11-0131EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN NIGERIABiliqees Ayoola ABDULMUMIN0University of Ilorin, Ilorin Public debt is a critical tool for governments to fund their spending, particularly when it is difficult to raise taxes and reduce public expenditure. However, this process has left most governments with massive outstanding debts, hence, the need to examine the effect of public debt on economic growth in Nigeria. The study employed secondary data, which was sourced from Central Bank of Nigeria Statistical bulletin over a period of 33 years from 1987 to 2020. The study adopted expost facto research design. The study also employed the Autoregressive distributive lag (ARDL). The result of the study revealed that external debt is a positive determinant of economic growth in Nigeria with a p-value of 0.0255. The study also revealed that domestic debt is a negative significant determinant of economic growth in Nigeria with a coefficient value of 0.0005. The study concludes that public debt has significant effect on economic growth in Nigeria. The study therefore recommends that government of Nigeria should make more use of external debt than domestic debt because of the low interest of external debt to domestic debt which will help in reducing the debt burden. https://majaf.com.ng/index.php/majaf/article/view/60Public DebtEconomic Growth |
| spellingShingle | Biliqees Ayoola ABDULMUMIN EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN NIGERIA Malete Journal of Accounting and Finance Public Debt Economic Growth |
| title | EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN NIGERIA |
| title_full | EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN NIGERIA |
| title_fullStr | EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN NIGERIA |
| title_full_unstemmed | EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN NIGERIA |
| title_short | EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN NIGERIA |
| title_sort | effect of public debt on economic growth in nigeria |
| topic | Public Debt Economic Growth |
| url | https://majaf.com.ng/index.php/majaf/article/view/60 |
| work_keys_str_mv | AT biliqeesayoolaabdulmumin effectofpublicdebtoneconomicgrowthinnigeria |