Comparative Analysis of Public Debt Management and Economic Growth in Nigeria

Abiodun, A.S. and Adewole, O.O and Nwanji, T. I. and Otekunrin, A. O. and Oladipo, O.A. and Awonusi, Frank (2018) Comparative Analysis of Public Debt Management and Economic Growth in Nigeria. Ilorin Journal of Finance, University of Ilorin.

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Abstract

The study examined the impact of public debt management on the economic growth of Nigeria putting into consideration the influence of military and civilian rule for the period of 1983-2015. The estimation techniques employed in the study is Error Correction Model. To avoid spurious regression due to the problem of non-stationarity of data, the Augmented Dickey Fuller test was used to check for the presence of a unit root, Ljung-Box Q-statistics test for autocorrelation and Breusch-Pagan Godfrey test for Heteroscedasticity in the variables. The results showed a significant long run relationship exists between public debt management and economic growth in Nigeria under the military, but a relative low impact on economic growth of Nigeria under the civilian rule. This may due to poor management strategies and indiscriminate borrowing by states of the federation without check and caution by the civilian regime. It was advised that public borrowing should be channelled to developmental projects and productive sectors of the economy that will stimulate growth in the long run. Keywords: Public Debt; Public Debt Management; Debt overhang; Economic growth

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