EXTERNAL DEBT AND PUBLIC EXPENDITURE NEXUS IN NIGERIA
Iliya, Ayuba Thompson , Tahir, Hussaini Mairiga and Yahaya, Auwal
Volume 12 Issue 2
Abstract
This study empirically examined external debt and public expenditure nexus in Nigeria using Autoregressive Distributed Lag (ARDL) model covering the period 1985-2021. Estimated results indicated that external debt service payment and economic growth have positive and significant relationship with public expenditure. In contrast the results also revealed that exchange rate and interest rate have negative and significant impact on total government expenditure. The study recommends that effective mechanism should be put in place to ensure that new borrowing is judiciously utilized and government should strive to finance budget deficit by improving its revenue sources. Keywords: ARDL, External Debt Service, Nigeria, Public Expenditure.
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