Contact: +91-9711224068
International Journal of Applied Research
  • Multidisciplinary Journal
  • Printed Journal
  • Indexed Journal
  • Refereed Journal
  • Peer Reviewed Journal

ISSN Print: 2394-7500, ISSN Online: 2394-5869, CODEN: IJARPF

International Journal of Applied Research

Vol. 5, Issue 3, Part D (2019)

Public Debt and inflation in Nigeria: An econometric analysis

Author(s)
Dr. CI Ezeanyeji, Imoagwu Chika Priscilla and Ejefobihi Ugochukwu Frank
Abstract
This study examined the relationship between public debt and inflation in Nigeria for the period 1981 to 2017. The Augmented Dickey-Fuller (ADF) test, co-integration test and Error Correction Model (ECM), were employed in the analysis. The results of the analyses revealed that public debt, exchange rate and money supply has positive and significant impact on inflation in Nigeria. Also, real GDP growth rate has negative and statistically insignificant impact on inflation in Nigeria. The study recommends that government should sustain lower inflation rate through tight fiscal and monetary policies, financing of budget deficit from non-inflationary sources, implementation of price stabilization program by subsiding basic food items, and effectively managing public debt. Also, government should propose polices to reduce the public debt, through enhancing the tax base and lowering expenditures through structural reforms.
Pages: 219-224  |  382 Views  11 Downloads
How to cite this article:
Dr. CI Ezeanyeji, Imoagwu Chika Priscilla, Ejefobihi Ugochukwu Frank. Public Debt and inflation in Nigeria: An econometric analysis. Int J Appl Res 2019;5(3):219-224.
Call for book chapter
International Journal of Applied Research