ABSTRACTRegardless of the vast amount of debt
Nigerian government accommodate annually, the projected level of development is
not been realized as sizeable percentage of her citizens still lives in miserable
poverty, low standard of living and soaring level of unemployment and so on. Consequently,
one starts to question why the theoretical proposition seems not to be working
in the Nigerian perspective. It is based on these commotions that this research
work seeks to scrutinize the effect of deficit financing on recovery and
development of the Nigerian economy between the periods 1981 to 2015 employing
error correction model and granger causality test. Study exposes that Federal Government
external debt displays a significant P-value of 0.0173 with a positive
coefficient of 0.000031 signifying that 1% increase in government external debt
is capable of intensifying economic recovery and development in Nigeria to the
tune of 0.00003. The details of the causality test also corroborate the report
in the error correction model and thus advocate that external debt extensively adds
to the development of the Nigeria economy while domestic debt and deficit
budget does not give the impression to granger cause economic development in
Nigeria. On this basis, study affirms that deficit financing is a crucial incentive
in advancing economic development in Nigeria if effectively disbursed for the primary
rationale for which it was meant for. Additionally, study thus authenticates
the Keynesian theory of the existence of positive relationship between deficit
financing and economic recovery. On this note, study recommends that executives
of the Nigerian economy should harmonize the appropriation of borrowed fund and
make certain that it is well utilized towards improving the capital and
production dominance of the nation as this will further boost the realization
of accomplishing a sustainable level of
economic development in Nigeria.
We Offer The Following Services To Researchers All Over The World:.
Sourcing Of Data,Analysis Of Data,Interpretation ,
Download Over 50,000 Project materials.We are the best when it comes to research materials, data analysis using:E-view, SPSS etc.
