An Empirical Application of Debt Neutrality to the Nigerian Economy: Further Evidence

Authors

  • Taiwo Adekunte Aderemi University of Ibadan Nigeria

Keywords:

DEBT-NEUTRALITY, NIGERIA, DEBT

Abstract

Domestic debt accumulation by the Nigerian government has increased in recent times. One reason adduced for this is the need to finance the fiscal deficit. At the same time, the government is embarking on policies to stimulate economic growth. According to the debt-neutrality hypothesis, raising revenue either through domestic bonds or taxes does not matter. This means that domestic debt accumulation by the Nigerian government may not stimulate economic growth as desired.  This study therefore investigates the debt-neutrality hypothesis. I found that the key variables in testing the validity of the proposition did not support the debt neutrality in Nigeria.

Downloads

Additional Files

Published

2014-07-01

How to Cite

Aderemi, T. A. (2014). An Empirical Application of Debt Neutrality to the Nigerian Economy: Further Evidence. International Journal of Economic Practices and Theories, 4(4), 493-503. Retrieved from http://ijept.eu/index.php/ijept/article/view/An_Empirical_Application_of_Debt_Neutrality_to_the_Nigerian_Ec

Issue

Vol. 4 No. 4 (2014)

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.

  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).