IDEAS home Printed from https://ideas.repec.org/a/aii/ijcmss/v10y2019i3p01-15.html
   My bibliography  Save this article

An Assessment of Budget Deficit Financing and Nigeria’s External Sector Performance (1990-2017)

Author

Listed:
  • Ajayi S.O. Author-Workplace- Department of Banking and Finance, Kogi State University, Nigeria.
  • Modeyin F.

    (Department of Banking and Finance, Kogi State University, Nigeria.)

  • Nwankwo O. Author-Workplace- Department of Banking and Finance, Kogi State University, Nigeria.

Abstract

This paper assessed Budget Deficit Financing and Nigeria’s External Sector Performance (1990-2017); the general objective of the study is to assess Budget Deficit Financing of Nigeria in the context of her performance in the External Sector while the specific objective is tied to evaluatingthe implications of Budget Deficit Financing on Nigeria’s Net Trade and Foreign Direct Investment. The ADF unit root test and the Autoregressive Distributed Lag (ARDL) models were used as the estimation techniques of the data analysis. The findings of thestudy showed that 78% of the total variation in Nigerian Net Trade (NT) resulted from the explanatory variables (DFB and FDI) included in the model and conclude that: Budget Deficit Financing (DBF) has insignificant positive impact on the Nigerian External Sector Performance during the period reviewed, and that, FDI’s impact is significant and positive on the Nigeria’s External Sector Performance during the period reviewed. Hence, we recommend that government should focus on fiscal and monetary policies that will enshrine fiscal discipline for at levels of government and its agencies.

Suggested Citation

  • Ajayi S.O. Author-Workplace- Department of Banking and Finance, Kogi State University, Nigeria. & Modeyin F. & Nwankwo O. Author-Workplace- Department of Banking and Finance, Kogi State University, Ni, 2019. "An Assessment of Budget Deficit Financing and Nigeria’s External Sector Performance (1990-2017)," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 10(3), pages 01-15, September.
    • Handle: RePEc:aii:ijcmss:v:10:y:2019:i:3:p:01-15
    DOI: 10.18843/ijcms/v10i3/01
    as

    Download full text from publisher

    File URL: http://scholarshub.net/index.php/ijcms/article/view/6/5
    Download Restriction: no
    File URL: http://scholarshub.net/index.php/ijcms/article/view/6
    Download Restriction: no
    File URL: https://libkey.io/10.18843/ijcms/v10i3/01?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aii:ijcmss:v:10:y:2019:i:3:p:01-15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mr. Asif Anjum (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.