An Empirical Analysis of Public Debt and the General Price Level in Nigeria

Abstract

This study examines the determinants of manufacturing sector performance in the Nigerian economy. This was aimed at ascertaining how aggregate public debt (PD) and aggregate debt servicing (DS) affected general price level (PRL) as dependent variable in Nigeria. Historical data was collated and estimated employing the ARDL-based Ordinary Least Squares (OLS) technique. The empirical results indicate that aggregate public debt increased inflation while debt servicing reduced in Nigeria. On the basis of the findings of this study, the following recommendations are made. Policies that promote more employment and economic stimulus should be pursued to with public debt to enhance the performance of the economy

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