The Effects of Government Deficits Spending on the Nigerian Economy
26 Pages Posted: 20 Feb 2013
Date Written: February 19, 2013
The study investigates the effects of government Deficits spending (GDS) on the macro economy of Nigeria. The study covered the period of 1986 to 2011. Time series data for the period were gathered mainly from the CBN statistical Bulletin, 2010, 2011. One hypothesis as been proposed namely (Ho) that Government Deficit Spending does not have significant effect on the macroeconomic variables. Using Ordinary Least Squares (OLS) are Multiple Regression the study found that Government Deficits Spending has significant effects (through varying in degrees) on the explanatory variables. In conclusion the government is asked to curtail persistent deficits spending especially when such deficits are not for productive activities. it is recommended that further research be made to find out other variables (33%) that explains the effects of Government Deficits Spending.
Keywords: exchange rate, gross domestic product, inflation rate, money supply, lending rate
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