American Journal of Economics and Business Management
by "GLOBAL RESEARCH NETWORK" LLC (USA)
openjournathemelogo
Quick jump to page content
  • Main Navigation
  • Main Content
  • Sidebar

American Journal of Economics and Business Management
  • Home
  • Current
  • Archives
  • Announcements
  • Submissions
  • About
    • About the Journal
    • Editorial Team
    • Contact
  • Login
  • Home
  • Current
  • Archives
  • Announcements
  • Submissions
  • About
    • About the Journal
    • Editorial Team
    • Contact
  1. Home
  2. Archives
  3. Vol. 6 No. 1 (2023): American Journal of Economics and Business Management
  4. Articles

Issue

Vol. 6 No. 1 (2023): American Journal of Economics and Business Management

Issue Published : January 6, 2023
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Domestic Debt and Economic Growth Nexus: The Nigeria Evidence

Pamogho, M.
Department of Finance and Banking, University of Port Harcourt, Rivers State, Nigeria
Ifionu, E. P.
Department of Finance and Banking, University of Port Harcourt, Rivers State, Nigeria
Ogunbiyi, S. S.
Department of Finance and Banking, University of Port Harcourt, Rivers State, Nigeria

Corresponding Author(s) : Pamogho, M.

[email protected]

American Journal of Economics and Business Management, Vol. 6 No. 1 (2023): American Journal of Economics and Business Management
Article Published : January 12, 2023

Share
WA Share on Facebook Share on Twitter Pinterest Email Telegram
  • Abstract
  • Cite
  • References
  • Authors Details

Abstract

Propelled by the need to promote growth in the economy, the study evaluates the effects of Domestic Debt and Economic Growth in Nigeria over the period 1981 - 2019. Secondary data were sourced from the Central Bank of Nigeria Statistical Bulletin. Domestic Debt is captured using indicators such as Federal Government Domestic Debt, Domestic Debt Servicing. Government Expenditure and Lending, while Economic growth was proxy by Gross domestic product in Nigeria. The study employed the Stationarity Test, Johansen Co-integration Test and the Parsimonious error correction model in evaluating the nature of the prevailing relationship between the underlying variables. The result revealed that the Federal Government Domestic Debt, and Domestic Debt Servicing exhibited positive and significant influence on economic growth in Nigeria. While Government expenditure is seen to have negative and insignificant influence on Gross domestic product. Lending rate showed positive and insignificant influence on economic growth in Nigeria within the period of this study. In light of the observed findings, the study recommends that projects to be financed with government borrowing should be properly appraised and their technical feasibility, financial viability and economic desirability ascertained before the funds are committed. Government should improve more on capital expenditures such as infrastructures since they are the key to growth and will reduce the cost of production and investment. Also, government and the Debt Management Office should draw up guidelines to limit the growth of future domestic debt. Effective mechanism should be put in place to ensure that any new borrowing is judiciously utilized to contribute to economic growth.

Keywords

Domestic Debt Federal Government Domestic Debt Government Expenditure

Full Article

Generated from XML file
M., P. ., P., I. E., & S., O. S. . (2023). Domestic Debt and Economic Growth Nexus: The Nigeria Evidence. American Journal of Economics and Business Management, 6(1), 75–85. Retrieved from https://globalresearchnetwork.us/index.php/ajebm/article/view/1886
  • ACM
  • ACS
  • APA
  • ABNT
  • Chicago
  • Harvard
  • IEEE
  • MLA
  • Turabian
  • Vancouver
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
References
  1. Abdullahi, H., Abdullahi, Y. Z., & Bello, A. A. (2012). Rebranding Nigeria's educational system for effective national economic development. Academic Research International, 3(1), 186.
  2. Akhanolu, I. A., Babajide, A. A., Akinjare, V. A., Tolulope, O., & Godswill, O. (2018). The effect of public debt on economic growth in Nigeria: An empirical investigation. International Business Management, 12(6), 436–441.
  3. Akpansung, A. O., & Gidigbi, M. O. (2020). Domestic Public Debts and Economic Growth Nexus in Nigeria: Further Empirical Evidence from Causality and Structural Breaks Analyses. Nile Journal of Business and Economics, 6(15), 39-58.
  4. Awe, O. O. (2012). On Pairwise Granger causality Modelling and Econometric Analysis of Selected Economic Indicators. Interstat Journals. net/YEAR/2012/articles/1208002. pdf.
  5. Bakare, I.O.A., Ogunlana, O.F., Adeleye, O. & Mudasiru, A. (2016). Empirical Analysis of the Effects of Domestic Debt on Nigerian Economic Growth. International Journal of Social Sciences and Humanities Reviews, 6(1), 40 – 50.
  6. Coccia, M. (2017). Asymmetric paths of public debt and of general government deficits across countries within and outside the European monetary unification and economic policy of debt dissolution. The Journal of Economic Asymmetries, 17(2017), 17–31. https://doi. org/10.1016/j.jeca.2016.10.003
  7. Egbetunde, T. (2012). Public debt and economic growth in Nigeria: Evidence from granger causality. American Journal of Economics, 2(6), 101–106. https://doi.org/ 10.5923/j.economics.20120206.02
  8. Ewubare, D., Nteegah, A. & Okpoi, G. (2017). Public Borrowing and the Nigerian Economy: An Autoregressive Distributed Lag Model (ARDL) Approach. The International Journal of Social Sciences and Humanities Invention 4(5), 3506-3514.
  9. Fasoye, K (2018). Nigeria’s Domestic Debt Profile (1980-2017).Historical Research Letter ISSN 2224-3178(Paper) ISSN 2225-0964 (online) 47
  10. Gordon, L. B., & Cosimo, M. (2018). Government debt in EMU countries. The Journal of Economic Asymmetries, 18(C), 1–14.
  11. Jhingan,M.L(2011), Money, Banking ,International Trade and Public Finance (8th ed.),Vrinda Publications(P) Ltd. B-5, Ashish Complex, ISBN978-81-8281-384-7 pp638-650.
  12. Johansen, S. (1988). Likelihood-based Inference in Cointegrated Vector Autoregressive Models. Oxford University Press: Oxford.
  13. Joy, J., & Panda, P. K. (2020). Pattern of public debt and debt overhang among BRICS nations: An empirical analysis. Journal of Financial Economic Policy, 12(3), 345–363. https://doi.org/10.1108/JFEP-01-2019-0021
  14. Mba, P. N., Yuni, D. N., & Oburota, C. S. (2013). Analysis of domestic debt: Implication for economic growth in Nigeria. Global Journal of Social Sciences, 12(1), 1-9.
  15. Mhlaba, N., Phiri, A., & Nsiah, C. (2019). Is public debt harmful towards economic growth? New evidence from South Africa. Cogent Economics & Finance, 7(1), 1603653. https://doi.org/10.1080/23322039.2019. 1603653
  16. Nwikina, C.G; Gbarato, L,M; and Meekor,J.J (2020).The Nigeria’s Debt –Growth Nexus: A Blessing or Burden? Economy, 7(2) 119-127
  17. Nwinee, B.F & Torbira ,L.L(2012). Public Financial Management In Nigeria. University of Port Harcourt Press: Port Harcourt Nigeria, ISBN:978-978-50726-4-8 pp17-173
  18. Okwu, A.T., Obiwuru, T.C. Obiakor, R.T., & Oluwalaiye, O.B. (2016). Domestic Debt and Economic Growth in Nigeria: Data-based Evidence. Greener Journal of Economics and Accountancy, 5(1), 001-012. CrossRef
  19. Pereira, A. and Xu, Z. (2000). Export growth and domestic performance. Rev. Int. Econ., 8: 60- 73. http://ideas.repec.org/a/bla/reviec/v8y2000i1p60-73.html, 2000.
  20. Saungweme, T., & Odhiambo, N. M. (2019). Government debt, government debt service and economic growth nexus in Zambia: a multivariate analysis. Cogent Economics & Finance, 7(1), 1622998.
  21. Tamunonimim, A.N. (2013). Domestic Debt and Poverty in Nigeria: An Empirical Time Series Investigation. European Journal of Accounting, Auditing and Financial Research, 5(2), 33-47.
  22. Thao, P. T. P. (2018). Impacts of public debt on economic growth in six ASEAN countries. Retsumeikan Annual Review of International Studies, 17(1), 63–88.
  23. Victoria, O. I., Mbadike, N. S., & Ikechi, K. S. (2021). Nigeria’s Domestic Public Debts and Economic Development. International Journal of Management Science and Business Administration, 7(5), 7-22.
  24. Yusuf, A., & Mohd, S. (2021). The impact of government debt on economic growth in Nigeria. Cogent Economics & Finance, 9(1), 1946249.
Read More

References


Abdullahi, H., Abdullahi, Y. Z., & Bello, A. A. (2012). Rebranding Nigeria's educational system for effective national economic development. Academic Research International, 3(1), 186.

Akhanolu, I. A., Babajide, A. A., Akinjare, V. A., Tolulope, O., & Godswill, O. (2018). The effect of public debt on economic growth in Nigeria: An empirical investigation. International Business Management, 12(6), 436–441.

Akpansung, A. O., & Gidigbi, M. O. (2020). Domestic Public Debts and Economic Growth Nexus in Nigeria: Further Empirical Evidence from Causality and Structural Breaks Analyses. Nile Journal of Business and Economics, 6(15), 39-58.

Awe, O. O. (2012). On Pairwise Granger causality Modelling and Econometric Analysis of Selected Economic Indicators. Interstat Journals. net/YEAR/2012/articles/1208002. pdf.

Bakare, I.O.A., Ogunlana, O.F., Adeleye, O. & Mudasiru, A. (2016). Empirical Analysis of the Effects of Domestic Debt on Nigerian Economic Growth. International Journal of Social Sciences and Humanities Reviews, 6(1), 40 – 50.

Coccia, M. (2017). Asymmetric paths of public debt and of general government deficits across countries within and outside the European monetary unification and economic policy of debt dissolution. The Journal of Economic Asymmetries, 17(2017), 17–31. https://doi. org/10.1016/j.jeca.2016.10.003

Egbetunde, T. (2012). Public debt and economic growth in Nigeria: Evidence from granger causality. American Journal of Economics, 2(6), 101–106. https://doi.org/ 10.5923/j.economics.20120206.02

Ewubare, D., Nteegah, A. & Okpoi, G. (2017). Public Borrowing and the Nigerian Economy: An Autoregressive Distributed Lag Model (ARDL) Approach. The International Journal of Social Sciences and Humanities Invention 4(5), 3506-3514.

Fasoye, K (2018). Nigeria’s Domestic Debt Profile (1980-2017).Historical Research Letter ISSN 2224-3178(Paper) ISSN 2225-0964 (online) 47

Gordon, L. B., & Cosimo, M. (2018). Government debt in EMU countries. The Journal of Economic Asymmetries, 18(C), 1–14.

Jhingan,M.L(2011), Money, Banking ,International Trade and Public Finance (8th ed.),Vrinda Publications(P) Ltd. B-5, Ashish Complex, ISBN978-81-8281-384-7 pp638-650.

Johansen, S. (1988). Likelihood-based Inference in Cointegrated Vector Autoregressive Models. Oxford University Press: Oxford.

Joy, J., & Panda, P. K. (2020). Pattern of public debt and debt overhang among BRICS nations: An empirical analysis. Journal of Financial Economic Policy, 12(3), 345–363. https://doi.org/10.1108/JFEP-01-2019-0021

Mba, P. N., Yuni, D. N., & Oburota, C. S. (2013). Analysis of domestic debt: Implication for economic growth in Nigeria. Global Journal of Social Sciences, 12(1), 1-9.

Mhlaba, N., Phiri, A., & Nsiah, C. (2019). Is public debt harmful towards economic growth? New evidence from South Africa. Cogent Economics & Finance, 7(1), 1603653. https://doi.org/10.1080/23322039.2019. 1603653

Nwikina, C.G; Gbarato, L,M; and Meekor,J.J (2020).The Nigeria’s Debt –Growth Nexus: A Blessing or Burden? Economy, 7(2) 119-127

Nwinee, B.F & Torbira ,L.L(2012). Public Financial Management In Nigeria. University of Port Harcourt Press: Port Harcourt Nigeria, ISBN:978-978-50726-4-8 pp17-173

Okwu, A.T., Obiwuru, T.C. Obiakor, R.T., & Oluwalaiye, O.B. (2016). Domestic Debt and Economic Growth in Nigeria: Data-based Evidence. Greener Journal of Economics and Accountancy, 5(1), 001-012. CrossRef

Pereira, A. and Xu, Z. (2000). Export growth and domestic performance. Rev. Int. Econ., 8: 60- 73. http://ideas.repec.org/a/bla/reviec/v8y2000i1p60-73.html, 2000.

Saungweme, T., & Odhiambo, N. M. (2019). Government debt, government debt service and economic growth nexus in Zambia: a multivariate analysis. Cogent Economics & Finance, 7(1), 1622998.

Tamunonimim, A.N. (2013). Domestic Debt and Poverty in Nigeria: An Empirical Time Series Investigation. European Journal of Accounting, Auditing and Financial Research, 5(2), 33-47.

Thao, P. T. P. (2018). Impacts of public debt on economic growth in six ASEAN countries. Retsumeikan Annual Review of International Studies, 17(1), 63–88.

Victoria, O. I., Mbadike, N. S., & Ikechi, K. S. (2021). Nigeria’s Domestic Public Debts and Economic Development. International Journal of Management Science and Business Administration, 7(5), 7-22.

Yusuf, A., & Mohd, S. (2021). The impact of government debt on economic growth in Nigeria. Cogent Economics & Finance, 9(1), 1946249.

Author biographies is not available.
Download this PDF file
VIEW ARTICLE
Statistic
Read Counter : 15 Download : 192

Downloads

Download data is not yet available.

Table Of Contents

  • About the Journal
  • Join as Reviewer
  • Editorial Board
  • Online First
  • Current Issue
  • Archives
  • Advanced Search
  • Article Submission
  • Why Publish with us
  • Registration
  • Publication Fees
  • Journal Policies and Ethics
Twitter LinkedIn Facebook email
Editorial Pick

New therapies could treat tissue swelling that afflicts cancer surgery patients and others

28 August 2019
Farisha Nagina

Pan-tumor genomic biomarkers for PD-1 checkpoint blockade–based immunotherapy

28 August 2019
Farisha Nagina

Mystery solved? Why cats eat grass

28 August 2019
Farisha Nagina

New therapies could treat tissue swelling that afflicts cancer surgery patients and others

28 August 2019
Farisha Nagina

Mystery solved? Why cats eat grass

28 August 2019
Farisha Nagina

Injection helps the immune system obliterate tumors, at least in mice

28 August 2019
Farisha Nagina

'Liquid biopsy' promises early detection for cancer

28 August 2019
Farisha Nagina

Blood test shows promise for spotting early cancers

28 August 2019
Farisha Nagina

Cure for a common turtle cancer takes a lesson from human cancers

28 August 2019
Farisha Nagina

New therapies could treat tissue swelling that afflicts cancer surgery patients and others

28 August 2019
Farisha Nagina
  Journal Indexed Databases
 

Open Access

Open Access

American Journal of Science and Learning for Development provides immediate open access to its content on the principle that making research freely available to the public supports greater global knowledge exchange. It means users have free and unlimited access such as reading, download, copying, distributing, print, searching or link to the full texts of all articles published on Comdev, and Users are allowed to re-use the published article of a proper citation of the original publication is given.

These works are licensed under a Creative Commons Attribution- 4.0 International License (CC - BY 4.0).

read more
Open Access

Publication Ethics

We value the privacy of any published material that confirm by the author. We encourage the author to read the details about the ethics or any submission guidelines on this link...

read more
Open Access

Processing Charge

As our policy to support open access. Any of submitted articleis free of charge on APC however we strongly have higher standard on any article based on our criterias and result of the expertise reviewer...

read more
Open Access

Membership

We encourage you either as a reader or author to participate on our open community. Our collflex-aboration willincrease the positiveimpact on how the knowledge would spread...

read more

Meet Our Editorial Team

Dr. Victor Sohmen 
Professor, Department of Management and Leadership Drexel University Philadelphia, Pennsylvania, USA
Chief in Editor
Dr. Anisul M. Islam
Professor, Department of Economics University of Houston-Downtown Davies College
Senior Editor
Dr. S S Narta
Professor, Department of Commerce, Himachal Pradesh University, Shimla, INDIA
Editor
Prof. Tushar Ram Sangole
SGBAU, Amravati, Maharashtra, India
Executive Editor
Prof. Farhod Ahrorov
Samarkand branch of Tashkent State University of Economics, Uzbekistan
Editor
Prof. Rosa Batista-Canino
Universidad de Las Palmas de Gran Canaria | ULPGC · Department of Economics and Business
Editor

 

 

Author Resources

  •    Author Guidelines
  •     Download Manuscript Template
  •   Review Process

Information

  • For Readers
  • For Authors
  • For Librarians

"Global Research Network" LLC (USA) - is established to reach academic excellence in multidisciplinary fields of studies. This publication is an international platform for scholars while making their research visible through the Open Access Policy. "Global Research Network" LLC (USA) helps you integrate into the new research world and opens doors of opportunities in your further life. "Global Research Network" LLC (USA) is where scholars meet academic research journals according to their research interests. In this way, the American Journal of Economics and Business Management (AJEBM) is a peer-reviewed, monthly e-journal that publishes original, innovative, and novel works in different areas of study. This academic journal represents the intersection of economics as a scientific discipline and professional analyses of business management. As the journal publishes an open access policy, it collects qualified works from all over the world. We will accept only proper English manuscripts with a fair review. We are currently working on several indexings, which will make your paper well-registered and well cited. We also have done significant changes to the template to make it look better and proportional

Current Issue

  • Atom logo
  • RSS2 logo
  • RSS1 logo

Publication Ethics

American Journal of Economics and Business Management (AJEBM)

 

Monthly, open-access American Journal, that focuses on finance, economics, marketing, management,  service, tourism, banking, and accounting.
ISSN: 2576-5973
Journal DOI : https://doi.org/10.31150
Tools

Crossref Similarity Check

 Focus & scopes

 Author Guideline

  Peer Review Process

  Publication ethics

  Open Access Policy

  Copyright Notice

  Open Author Fees

 Statistics

Keywords
Home | About Us | Terms & Condition | Disclaimer | Privacy Policy | Downloads |Sitemap |Contact Us
 
This work is licensed under a Creative Commons Attribution 4.0 International License.

Disclaimer: Articles published by Global Research Network LLC (USA) have been pre-viewed and authenticated by the Authors before publication. The Journal, Editor, and editorial board are not entitled or liable to either justify or be responsible for inaccurate and misleading data if any. It is the sole responsibility of the Author concerned. If any queries or infringements occur, they are subject to the platform's administration. Read our Plagiarism Policy and use of this site signifies your agreement to the Terms of Use

© 2023 American Journal of Economics and Business Management (AJEBM), All rights reserved.  This is an open-access article distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License  Licensed under Creative Commons License a Creative Commons Attribution 4.0 International License .
Themes by Openjournaltheme.com
https://globalresearchnetwork.us/index.php/ajebmThemes by Openjournaltheme.com