Domestic Debt and Real Sector Growth: A Var Approach.

Ogunbiyi; Sunday Samuel Ph.D; Okunlola; Funso Abiodun

Domestic Debt and Real Sector Growth: A Var Approach.

Ogunbiyi, Sunday Samuel Ph.D, Okunlola, Funso Abiodun

Abstract

This paper takes a look at whether domestic debt impact real sector growth in Nigeria with particular emphasis on the agriculture and industry sector growth. Our study likewise looked at a ten (10) month period forecast using the IRF. To achieve our objective, Agriculture growth was proxied by Agric GDP while industry growth proxied by industry GDP. Time series data covering a period of 33 years (1980 – 2013) was used. Data sets were source from the Central Bank of Nigeria economic reports and statistical bulletin of various issues, National Bureau of Statistics, Debt Management Office of the Federation and Federal Ministry of Finance. The descriptive statistics – Skewness, Kurtosis and Jarque-Bera statistics were analysed. The ADF unit root, and Vector Autoregression(VAR) analysis technique was also employed in our estimation. Similarly, the three approaches to estimating VAR - Granger Causality and the Impulse Response Function (IRF) were equally analyzed. The study concludes based on the findings that in an advent of consistency and project tied borrowing, real sector will experience growth and development

Keywords

Domestic DebtReal SectorImpulse Response Function – IRF

References

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Domestic Debt and Real Sector Growth: A Var Approach.

Abstract

Keywords

References

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