THE IMPACT OF BUDGET DEFICIT ON NIGERIA ECONOMIC GROWTH (1980-2017)
Abstract
This research study attempt to econometrically investigate the impact of budget deficit on the economic growth of Nigeria. It was carried out to determine the long-run effect of deficit budgeting and the inflationary pressure in Nigeria, it adopted OLS method of analysis where RGDP was chosen as the dependent variable and external debt, domestic credit, lending interest rate and inflation served as the explanatory variables.Further, ADF was used to test for the stationarity of the variables while cointegration test was conducted to determine the long-run relationship among the variables The study covered 37 years ranging from 1980-2017. The work therefore recommend that external source of financing deficit should be contracted for economic stability.
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