IMPACT OF DOMESTIC DEBT ON ECONOMIC GROWTH IN NIGERIA: ARDL MODEL APPROACH
Muritala, Abdulwariz and Sanni, Jemeel Adedotun
Volume 8 Issue 1
Abstract
This research focused on the impact of Nigeria's domestic debt on the country's economic growth. The study aimed to determine if a long-run relationship exists between domestic debt and economic growth and policy options for breaking the growth resistance problem. The study used the ARDL short run and long run estimation techniques on secondary data from the World Bank's World Development Indicators (WDI) and the Central Bank of Nigeria's (CBN) statistical bulletin to estimate its empirical model. The study found that domestic debt and population positively impact economic growth in Nigeria while government expenditure and interest rate do not. The study recommends that domestic debt should be invested in the economy's productive sector and, more specifically, in the real sector, and further productivity gain will be achieved in the improvement of capital project expenditure. Keywords: Economic Growth, Domestic Debt, and Domestic Savings, ARDL, Nigeria
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