DEFICIT FINANCING AND ECONOMIC GROWTH: THE NIGERIA EXPERIENCE
Sold By: Joe Project Store | Item Type: Project Material | Report this? | Attributes: 65 pages | 1-5 chapters | Amount: ₦5,000 | Marked useful: 7,442 times
INSTANT PROJECT MATERIAL DOWNLOADABSTRACT
The general objective of the study is to analyze the effect of deficit financing on Nigeria’s economic growth. Secondary data emanated from the publication of the Central Bank of Nigeria Statistical Bulletin, vol. 26, 2015 was utilized. The data collected spanned from the year 1981-2015. Augmented Dickey Fuller (ADF) unit root test, Johanson Co-integration test and Error Correction Model (ECM) were employed for the analysis and the finding shows that the all the variables were integrated of order 1(2) long-run relationship existed among them. The study therefore concluded that long run equilibrium relationships exist between dependent and independent variables. The research findings revealed that deficit financing through External debt borrowing has a significant negative effect on Nigeria’s economic growth. Also Domestic debt has a positive significant effect on Nigeria’s economic growth, while Debt service has no significant effect on Nigeria’s economic growth. The study therefore, recommends that Government should setup monitoring teams that will make sure that the budget is well and carefully implemented and as well as loan borrowed in other to reduce corruption and wastage.
BACKGROUND OF THE STUDY
Government, Military or Civilian believes that one way of solving social and economic problems is by increasing spending. Government as an agent of the people requires revenue to provide education, employment, adequate health services, infrastructures and good roads but in the process of discharging this enormous responsibility the revenue and/or spending requirements of the government may sometimes outstrip its availability, hence the recourse to deficit financing so as to fill the gap between expenditure needs and revenue availability.
Nigeria’s budget deficit experience dates back to 1961, and appeared justified during the immediate post-independence era, and since then till now 85% of Nigeria’s budget runs in deficit. Okoro (2013) stated that deficit financing arises largely because of the need to expand the economy Governments’ inability to carry out or execute capital projects most times is what births deficit. This ignites the need for Government to finance these projects either through internal borrowing, external borrowing or implementation of monetary instrument to increase the flow of fund in the economy. However there is a repel effect on the economic performance of any country whom the state of its economic activities are financed through the prolonged debt from foreign countries because it frustrates sole investors due to the high interest rate.
This material content is developed to serve as a GUIDE for students to conduct academic research
DOWNLOAD THIS PROJECT MATERIAL NOW!
Advertise Here
Not what you were looking for? Perform a search
What's your project topic?
Comment on Facebook:
Related Project Materials
- 1.
THE EFFECT OF SCAFFOLDING INSTRUCTIONAL STRATERGY ON CHEMISTRY STUDENTS ACADEMIC PERFORMANCE IN SENI...
CHAPTER ONE INTRODUCTION Background of the Study Teaching has been described as one of the human endeavors which require more wisdom, humility, lab...More »
Item Type: Project Material | 54 pages | 960 engagements |
- 2.
AN EVALUATION OF THE CREATION AND APPLICATION OF TEACHING MATERIALS IN EARLY CHILDHOOD EDUCATION
AN EVALUATION OF THE CREATION AND APPLICATION OF TEACHING MATERIALS IN EARLY CHILDHOOD EDUCATION CHAPTER ONE INTRODUCTION 1.1 BACKGROUND O...More »
Item Type: Project Material | 54 pages | 1,062 engagements |
- 3.
AN ASSESSMENT OF PSYCHO-SOCIAL FACTORS AS PREDICTORS OF STUDENTS ACADEMIC PERFORMANCE IN ISLAMIC STU...
AN ASSESSMENT OF PSYCHO SOCIAL FACTORS AS PREDICTORS OF STUDENTS ACADEMIC PERFORMANCE IN ISLAMIC STUDIES IN SECONDARY SCHOOLS CHAPTER ONE INTRODUCT...More »
Item Type: Project Material | 54 pages | 901 engagements |
- 4.
PARENTS SOCIO-ECONOMIC STATUS AND THE ATTITUDE OF SENIOR SECONDARY SCHOOL STUDENTS TOWARDS LEARNING
PARENTS SOCIO ECONOMIC STATUS AND THE ATTITUDE OF SENIOR SECONDARY SCHOOL STUDENTS TOWARDS LEARNING CHAPTER ONE INTRODUCTION 1.1 Background t...More »
Item Type: Project Material | 54 pages | 858 engagements |
- 5.
AN EXAMINATION OF IMPACT OF SCHOOL BUILDING COLLAPSE ON EDUCATION CONTINUITY (CASE STUDY OF SAINT AC...
CHAPTER ONE INTRODUCTION Background of the Study School buildings serve as the physical setting where the educational process takes place, involvin...More »
Item Type: Project Material | 54 pages | 772 engagements |
- 6.
EFFECT OF INADEQUATE DIET ON STUDENTS ACADEMIC PERFORMANCE IN SECONDARY SCHOOL IN ATISBO LOCAL GOVER...
CHAPTER ONE INTRODUCTION Background Of The Study According to the EFA Global Monitoring Report (UNESCO 2022), more than a quarter of children in su...More »
Item Type: Project Material | 54 pages | 891 engagements |