Enquiring into the Sustainability of Nigerian Economy: A Time series Analysis
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Date
2014-12
Journal Title
Journal ISSN
Volume Title
Publisher
Market Forces
Abstract
The study obtains time-series data of three independent variables (Public Expenditure,
Debt, and Reserve) and a dependent variable (Gross National Product) between 1971 and
2011 in Nigeria with the aim of verifying the sustainability of the economy. Following Keynesian
Model, it formulates hypotheses, estimates parameters, and uses Augmented Dickey-Fuller
test to test their significance by using E-View 7. It discovers that Nigerian economy is solvent
and sustainable with positive relationship between Public Income, Expenditure and Reserve
but negative relationship between the Public Income and Public Debt. It recommends increase
and judicious use of external debts and appreciates internalization of public reserves by disbursement
of some of the proceeds to the Traditional Financial Institution (TFI) to attain the
desired economic objectives of Nigeria. Despite its applicability, desirability and productivity;
the surmountable limitations of its recommendation are fear of corruption and marginalization
among others.
Key Words: Assets, Nigeria, Solvency, Sustainability, Traditional Financial System.