Impact of Some Economic Variables on the Real Gross Domestic Product of Nigeria

Ademuyiwa J. A., Adetunji A. A.

Abstract


The influences of External Debt Service (EDS), External Debt Stock (EDSt), Government Expenditure (GE), Inflation Rate (InfR), Interest Rate (IntR) and Exchange Rate (ExR) of Nigeria on the Real Gross Domestic Product (RGDP) are examined. Results of the analysis using Stepwise Regression (Backward Elimination and Forward Selection) reveals that GE, EDS, and IntR have positive significant contributions to the RGDP of the country compared to other variables considered.


Keywords


External debt; government expenditure; inflation rate; interest rate; exchange rate; real GDP; stepwise regression.

Full Text:

PDF

References


Adepoju, A.A., Salau, A.S., and Obayelu, A.E., (2007). The Effects of External Debt Management on Sustainable Economic Growth and Development: Lessons from Nigeria, MPRA, Paper No. 2147.

Ajayi, L.B. and Oke, M.O. (2012). “Effort of External Debt on Economic Growth and Development”.

International Journal of Business and Social Science, 3(1), 297-304.

Al-Gifari Hasnu (2015). The effects of government expenditure on economic growth: the case of Malaysia, MPRA No. 71254, 1-15

Ayadi, F.S. and Ayadi, F.O. (2008), “The Impact of External Debt on Economic Growth: A Comparative Study of Nigeria and South Africa”. Journal of Sustainable Development in Africa, 10(3), 234-264

Audu I. (2004). The Impact of External Debt on Economic Growth and Public Investment: The Case of Nigeria, African Institute for Economic Development and Planning (IDEP), Dakar.

Barro, R. (1990). Government Spending in a Simple Model of Endogenous Growth. The Journal of Political Economy, 14,103-125.

Copelman, M. and Wermer, A.M. (1996). The Monetary Transmission Mechanism in Mexico. Working Paper, no. 25. Washington, D.C.: Federal Reserve Board.

Fatoumata, K.M. (2017). Impact of Interest Rate on Economic Growth in Nigeria, Pyrex Journal of Business and Finance Management Research, 3(3), 98-111

Fosu A.K. (2007). The External Debt Servicing Constraint and Public Expenditure Composition: Evidence from African Economies, UNU-WIDER. Research Paper No. 2007/36.

Fouladi M. (2010). The Impact of Government Expenditure on GDP, Employment and Private Investment a CGE Model Approach, Iranian Economic Review, 15(27), 53-76

Hakeem B., Rasaki K., and Oyelekan B. (2015). Effects of Inflation Rate on Economic Growth in Nigeria (1986-2014), Developing Country Studies, 5(8), 153

Hammed B.J. (2008). The Impact of Real Gross Domestic Product of Nigeria, Menstar Publisher and Press, Ibadan.

Jelilov G. and Musa M. (2016). The Impact of Government Expenditure on Economic Growth in Nigeria, Sacha Journal of Policy and Strategic Studies, 5(1), 15 – 23

Komain, J. (2007). The Relationship between Government Expenditure and Economic Growth in Turkey. Journal of Economics and Economic Research, 1639-1664.

Malik S., Hayat M.K and Hayat M.U (2010). External Debt and Economic Growth: Empirical Evidence from Pakistan”, International Research Journal of Finance and Economics, 44, 88-97.

Mehari, M. and Wondafrash, A. (2008). The Impact of Money Supply on Inflation in Ethiopia. A paper presented at 7th Multidisciplinary Conference in Unity University College, Ethiopia.

Mohammed, M.M.A. (2005). The Impact of External Debt on Economic Growth: An Empirical Assessment of Sudan: 1978 – 2001, Eastern Social Science Research Review, 21(2), 53-66.

Morley, S. A. (1992). On the Effect of Devaluation during Stabilization Programs in LDCs. Review of Economics and Statistics 74(1), 21–27

Ndungu‘, N.S. (1997). Price and Exchange Rate Dynamics in Kenya: an Empirical Investigation (1970-1993). AERC research Paper,58.

Nurudeen, A., and Usman, A. (2010). Government Expenditure and Economic Growth in Nigeria, 1970-2008: A Disaggregated Analysis. Business and Economics Journal, 1–11.

Ogunmuyiwa M.S (2011). Does External Debt Promote Economic Growth? Current Research Journal of Economic Theory, 3(1), 29 – 35.

Okoye, L.U., Modebe, N.J., Adedayo, E.O. and Evbuomwan, G.O. (2017). Effect of External Debt on Economic Growth: Evidence from Nigeria, Sustainable Economic Growth, Education Excellence, and Innovation Management through Vision 2020, 4046-4058

Sulaiman, L.A. and Azeez, B.A. (2012),”Effect of External Debt on Economic Growth of Nigeria”.

Journal of Economics and Sustainable Development, 2(8)

Zaman R. and Arslan M. (2014): The Role of External Debt on Economic Growth: Evidence from Pakistan Economy, Journal of Economics and Sustainable Development, 5(24), 140-147




DOI: https://doi.org/10.33258/birci.v2i4.563

Refbacks

  • There are currently no refbacks.


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

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