Public Debt, Output, Prices, Prime Lending Rate, Vector Autoregressive Model, Granger Causality
This paper examines the impact of public sector borrowings on prices, interest rates, and output in Nigeria. It utilized a Vector Autoregressive framework, the Granger causality test, impulse response, and variance decomposition of the various innovations to study the impact. It found that shock to external debt stock increases prime lending rate, but with a lag. However, the level of external and domestic debt over the period of this study had no significant impact on the general price level and output.
CBN Journal of Applied Statistics
Essien, Sunday N.; Agboegbulem, Ngozi T. I.; Mba, Michael K.; and Onumonu, Ogochukwu G.
"An Empirical Analysis of the Macroeconomic Impact of Public Debt in Nigeria,"
CBN Journal of Applied Statistics (JAS): Vol. 7
, Article 7.
Available at: https://dc.cbn.gov.ng/jas/vol7/iss1/7