Effects of Budget Deficits on the Current Account Balance in Nigeria: A Simulation Exercise

F.O. Egwaikhide

Working Papers from African Economic Research Consortium

Abstract: This paper examines the effect of budget deficit on the current account balance in Nigeria, covering the period from 1973 to 1993. This is motivated by the fact that the magnitude of government has increased with amazing rapidity since the early 1980s. Simultaneously, the current account balance recorded deficits, to the extent that there is a high correspondence between these variables. A macroeconometric model captures the salient interrelationships between government budgetary developments, credit creation and the current account balance is constructed.

Keywords: NIGERIA; BUDGET; DEFICIT; SIMULATION (search for similar items in EconPapers)
JEL-codes: F32 H62 (search for similar items in EconPapers)
Date: 1997
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Persistent link: http://EconPapers.repec.org/RePEc:fth:afrirc:70

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