Public debt and inflation nexus in Nigeria: An ARDL bounds test approach

Akingbade Aimola and Nicholas Odhiambo

No 27738, Working Papers from University of South Africa, Department of Economics

Abstract: Inflationary tendencies of public debt have been the cause of an unsettling debate among policymakers in Nigeria. Using the autoregressive distributed lag (ARDL) framework, this study attempts to investigate the impact of total public debt on inflation in Nigeria for the period 1983?2018. The cointegrating regression results reveal evidence of a stable long-run relationship among inflation, total public debt, money supply, interest rate, economic growth, trade openness, and private investment in the presence of structural breaks. Empirical results show that the impact of public debt on inflation is statistically insignificant, irrespective of whether the regression was in the short or the long run. Hence, the study concludes that inflation in Nigeria could be driven by other factors other than public debt.

Keywords: public debt; inflation; ARDL; Nigeria. (search for similar items in EconPapers)
Date: 2021-07
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://uir.unisa.ac.za/bitstream/handle/10500/2773 ... 0test%20approach.pdf (application/pdf)

Related works:
Journal Article: Public debt and inflation nexus in Nigeria: An ARDL bounds test approach (2021)
Working Paper: Public Debt and Inflation Nexus in Nigeria: An ARDL Bounds Test Approach (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uza:wpaper:27738

Access Statistics for this paper

More papers in Working Papers from University of South Africa, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Shaun Donovan ().