Public-Sector Bonds and Economic Growth in Nigeria
No Thumbnail Available
Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Description
Most times, state and local borrowing takes the form of bond issuing to the
general public, which creates ease of accessibility by the investing community.
The investing public finds the opportunity a suitable time to buy security
assets which have government backing and serve as collateral for future
loan contractions. Curiously, this study tries to investigate the effect of each
type of government bond on economic growth. Thus, the study examines
the impact of various public-sector bonds on economic growth of Nigeria
from 2003-2019. To achieve the set objective, the study employs multiple
regression technique to assess the impact of each class of government
bond on GDP. The findings indicate that treasury bills and FGN bond impact
positively and significantly on economic growth of Nigeria. On the contrary,
Treasury bond and inflation affected growth negatively and substantially.
However, other government bonds and debts exert insignificant negative
influence on economic growth. The study suggests that the government
should endeavor to enhance the content of Treasury bond and other bonds.
Furthermore, the inflation rate should be brought under control by the relevant
government agencies.
Keywords
H Social Sciences (General), HB Economic Theory