Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes

Abiodun Akanbi; Uche Joe Uwaleke

doi:doi:10.11648/j.ijfbr.20230903.12

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Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes

Abiodun Akanbi, Uche Joe Uwaleke

Published in International Journal of Finance and Banking Research (Volume 9, Issue 3)

Received: 2 May 2023 Accepted: 23 May 2023 Published: 5 August 2023

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Abstract

The study examined the relationship between domestic public debt and economic growth in Nigeria between 1981 to 2019. In this period Nigeria was under military rule and civilian rule. The study was able examined the relationship domestic debt and economic growth in Nigeria based on type of regime. The ARDL estimation technique was used in the study. The study was hinged on the endogenous and neoclassical growth theories. The results shows that a positive relationship exists between domestic public debt and economic growth in Nigeria under the military and negative relationship on domestic public debt and growth during democratic rule in the short and long run. Also, the results revealed that domestic debt has a long run insignificant positive impact on growth, budget deficit has a positive relationship with growth although not significant. The results also shows that prime lending rate have significant positive long run effect on growth. The effect of inflation on economic growth is negative in the long run and not significant. The results showed there was evidence of unidirectional causality from population growth to economic growth. There was evidence unidirectional causality from to economic growth to prime lending rate and gross fixed capital formation growth. It can be concluded based on the findings of this study that the political regime could have impact economic growth and public debt. The study recommends borrowing should be done with prudently to make public debt sustainable.

Published in	International Journal of Finance and Banking Research (Volume 9, Issue 3)
DOI	10.11648/j.ijfbr.20230903.12
Page(s)	50-57
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Domestic Public Debt, Economic Growth, Political Regimes, Nigeria

References

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APA Style

Abiodun Akanbi, Uche Joe Uwaleke. (2023). Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes. International Journal of Finance and Banking Research, 9(3), 50-57. https://doi.org/10.11648/j.ijfbr.20230903.12

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ACS Style

Abiodun Akanbi; Uche Joe Uwaleke. Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes. Int. J. Finance Bank. Res. 2023, 9(3), 50-57. doi: 10.11648/j.ijfbr.20230903.12

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AMA Style

Abiodun Akanbi, Uche Joe Uwaleke. Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes. Int J Finance Bank Res. 2023;9(3):50-57. doi: 10.11648/j.ijfbr.20230903.12

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@article{10.11648/j.ijfbr.20230903.12,
  author = {Abiodun Akanbi and Uche Joe Uwaleke},
  title = {Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes},
  journal = {International Journal of Finance and Banking Research},
  volume = {9},
  number = {3},
  pages = {50-57},
  doi = {10.11648/j.ijfbr.20230903.12},
  url = {https://doi.org/10.11648/j.ijfbr.20230903.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20230903.12},
  abstract = {The study examined the relationship between domestic public debt and economic growth in Nigeria between 1981 to 2019. In this period Nigeria was under military rule and civilian rule. The study was able examined the relationship domestic debt and economic growth in Nigeria based on type of regime. The ARDL estimation technique was used in the study. The study was hinged on the endogenous and neoclassical growth theories. The results shows that a positive relationship exists between domestic public debt and economic growth in Nigeria under the military and negative relationship on domestic public debt and growth during democratic rule in the short and long run. Also, the results revealed that domestic debt has a long run insignificant positive impact on growth, budget deficit has a positive relationship with growth although not significant. The results also shows that prime lending rate have significant positive long run effect on growth. The effect of inflation on economic growth is negative in the long run and not significant. The results showed there was evidence of unidirectional causality from population growth to economic growth. There was evidence unidirectional causality from to economic growth to prime lending rate and gross fixed capital formation growth. It can be concluded based on the findings of this study that the political regime could have impact economic growth and public debt. The study recommends borrowing should be done with prudently to make public debt sustainable.},
 year = {2023}
}

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TY  - JOUR
T1  - Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes
AU  - Abiodun Akanbi
AU  - Uche Joe Uwaleke
Y1  - 2023/08/05
PY  - 2023
N1  - https://doi.org/10.11648/j.ijfbr.20230903.12
DO  - 10.11648/j.ijfbr.20230903.12
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 50
EP  - 57
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20230903.12
AB  - The study examined the relationship between domestic public debt and economic growth in Nigeria between 1981 to 2019. In this period Nigeria was under military rule and civilian rule. The study was able examined the relationship domestic debt and economic growth in Nigeria based on type of regime. The ARDL estimation technique was used in the study. The study was hinged on the endogenous and neoclassical growth theories. The results shows that a positive relationship exists between domestic public debt and economic growth in Nigeria under the military and negative relationship on domestic public debt and growth during democratic rule in the short and long run. Also, the results revealed that domestic debt has a long run insignificant positive impact on growth, budget deficit has a positive relationship with growth although not significant. The results also shows that prime lending rate have significant positive long run effect on growth. The effect of inflation on economic growth is negative in the long run and not significant. The results showed there was evidence of unidirectional causality from population growth to economic growth. There was evidence unidirectional causality from to economic growth to prime lending rate and gross fixed capital formation growth. It can be concluded based on the findings of this study that the political regime could have impact economic growth and public debt. The study recommends borrowing should be done with prudently to make public debt sustainable.
VL  - 9
IS  - 3
ER  -

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Author Information

Abiodun Akanbi

Department of Business Administration, Faculty of Management Sciences, Nile University of Nigeria, Abuja, Nigeria
Uche Joe Uwaleke

Department of Banking and Finance, Faculty of Management Sciences, Nasarawa State University, Keffi, Nigeria

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APA Style

Abiodun Akanbi, Uche Joe Uwaleke. (2023). Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes. International Journal of Finance and Banking Research, 9(3), 50-57. https://doi.org/10.11648/j.ijfbr.20230903.12

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ACS Style

Abiodun Akanbi; Uche Joe Uwaleke. Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes. Int. J. Finance Bank. Res. 2023, 9(3), 50-57. doi: 10.11648/j.ijfbr.20230903.12

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AMA Style

Abiodun Akanbi, Uche Joe Uwaleke. Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes. Int J Finance Bank Res. 2023;9(3):50-57. doi: 10.11648/j.ijfbr.20230903.12

Copy | Download

@article{10.11648/j.ijfbr.20230903.12,
  author = {Abiodun Akanbi and Uche Joe Uwaleke},
  title = {Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes},
  journal = {International Journal of Finance and Banking Research},
  volume = {9},
  number = {3},
  pages = {50-57},
  doi = {10.11648/j.ijfbr.20230903.12},
  url = {https://doi.org/10.11648/j.ijfbr.20230903.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20230903.12},
  abstract = {The study examined the relationship between domestic public debt and economic growth in Nigeria between 1981 to 2019. In this period Nigeria was under military rule and civilian rule. The study was able examined the relationship domestic debt and economic growth in Nigeria based on type of regime. The ARDL estimation technique was used in the study. The study was hinged on the endogenous and neoclassical growth theories. The results shows that a positive relationship exists between domestic public debt and economic growth in Nigeria under the military and negative relationship on domestic public debt and growth during democratic rule in the short and long run. Also, the results revealed that domestic debt has a long run insignificant positive impact on growth, budget deficit has a positive relationship with growth although not significant. The results also shows that prime lending rate have significant positive long run effect on growth. The effect of inflation on economic growth is negative in the long run and not significant. The results showed there was evidence of unidirectional causality from population growth to economic growth. There was evidence unidirectional causality from to economic growth to prime lending rate and gross fixed capital formation growth. It can be concluded based on the findings of this study that the political regime could have impact economic growth and public debt. The study recommends borrowing should be done with prudently to make public debt sustainable.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Domestic Public Debt and Economic Growth in Nigeria: Effect of Political Regimes
AU  - Abiodun Akanbi
AU  - Uche Joe Uwaleke
Y1  - 2023/08/05
PY  - 2023
N1  - https://doi.org/10.11648/j.ijfbr.20230903.12
DO  - 10.11648/j.ijfbr.20230903.12
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 50
EP  - 57
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20230903.12
AB  - The study examined the relationship between domestic public debt and economic growth in Nigeria between 1981 to 2019. In this period Nigeria was under military rule and civilian rule. The study was able examined the relationship domestic debt and economic growth in Nigeria based on type of regime. The ARDL estimation technique was used in the study. The study was hinged on the endogenous and neoclassical growth theories. The results shows that a positive relationship exists between domestic public debt and economic growth in Nigeria under the military and negative relationship on domestic public debt and growth during democratic rule in the short and long run. Also, the results revealed that domestic debt has a long run insignificant positive impact on growth, budget deficit has a positive relationship with growth although not significant. The results also shows that prime lending rate have significant positive long run effect on growth. The effect of inflation on economic growth is negative in the long run and not significant. The results showed there was evidence of unidirectional causality from population growth to economic growth. There was evidence unidirectional causality from to economic growth to prime lending rate and gross fixed capital formation growth. It can be concluded based on the findings of this study that the political regime could have impact economic growth and public debt. The study recommends borrowing should be done with prudently to make public debt sustainable.
VL  - 9
IS  - 3
ER  -

Copy | Download