An Empirical Analysis Of The Impact Of Budget Deficit and Deficit Financing On The Performance Of Nigeria Economy:- Nwajiobi Praise O
ABSTRACT
This study investigated the
effect of budget deficit and deficit financing pn the performance of \ Nigeria
economy using times series data covering from 1981-2018; and takingprevious
empirical studies as its'point ofdeparture. The specific objectives of the
study is to evaluate the effect of budget deficit and deficit financing on the performance
of Nigeria economy, i Within the methodological framework of OLS. The study
employs augmented dickey fuller (ADF), Error correction model, Co-integration
test. The variables used in the study include; budget deficit (BDF),
outstanding debt ofthe Federal government (DMD), official exchange rate ofNaira
to Any other currencies (EXCH), ratio of budget deficit to economic growth in
Nigeria (BPT) as the explanatory variables and RGDP as the dependent variable.
The Data on these variables were sourcedfrom the Central Bank ofNigeria (CBN)
statistical bulletin volume 29, 2018. The unitroot result revealed that only
BPT became stationary at levels, the other variables became stationary
afterfirst differencing and second difference. The Johansen Cointegration test
revealed that there is a long run relationship among the variables employed in
the study. ECM was employed to correct all the disequilibrium in the data. The
R2 shows that 95% ofthe changes in the dependent variable, are as a result
ofthe changes in the explanatory variable. The result of(he BreuschGodfrey
Serial Correlation LM Test shows that there is no serial correlation in the
model.
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MICHAEL, U (2026). An Empirical Analysis Of The Impact Of Budget Deficit and Deficit Financing On The Performance Of Nigeria Economy:- Nwajiobi Praise O. Mouau.afribary.org: Retrieved Apr 30, 2026, from https://repository.mouau.edu.ng/work/view/an-empirical-analysis-of-the-impact-of-budget-deficit-and-deficit-financing-on-the-performance-of-nigeria-economy-nwajiobi-praise-o-7-2
UNIVERSITY, MICHAEL. "An Empirical Analysis Of The Impact Of Budget Deficit and Deficit Financing On The Performance Of Nigeria Economy:- Nwajiobi Praise O" Mouau.afribary.org. Mouau.afribary.org, 30 Apr. 2026, https://repository.mouau.edu.ng/work/view/an-empirical-analysis-of-the-impact-of-budget-deficit-and-deficit-financing-on-the-performance-of-nigeria-economy-nwajiobi-praise-o-7-2. Accessed 30 Apr. 2026.
UNIVERSITY, MICHAEL. "An Empirical Analysis Of The Impact Of Budget Deficit and Deficit Financing On The Performance Of Nigeria Economy:- Nwajiobi Praise O". Mouau.afribary.org, Mouau.afribary.org, 30 Apr. 2026. Web. 30 Apr. 2026. < https://repository.mouau.edu.ng/work/view/an-empirical-analysis-of-the-impact-of-budget-deficit-and-deficit-financing-on-the-performance-of-nigeria-economy-nwajiobi-praise-o-7-2 >.
UNIVERSITY, MICHAEL. "An Empirical Analysis Of The Impact Of Budget Deficit and Deficit Financing On The Performance Of Nigeria Economy:- Nwajiobi Praise O" Mouau.afribary.org (2026). Accessed 30 Apr. 2026. https://repository.mouau.edu.ng/work/view/an-empirical-analysis-of-the-impact-of-budget-deficit-and-deficit-financing-on-the-performance-of-nigeria-economy-nwajiobi-praise-o-7-2