ABSTRACT
This study investigatedthe impact of deficit financing on economic development in Nigeria from 1980-2017 using data from Central Bank of Nigeria statistical bulletin (2018). The study adopted the Ordinary Least Square (OLS) method estimation technique to conduct quantitative analysis. The results of this study were analyzed using economic a priori criteria, statistical criteria and econometric criteria. Findings as analyzed in the empirical result of aggregate model revealed that budget deficit and gross fixed capital formation are negative and insignificant in impacting on economic development. Findings also revealed that inflation and labor force are positive and significant in impacting on economic development. The study recommends that government should mobilize funds from the surplus spending units to the deficit spending units to boast economic development in Nigeria. The study also recommends that there is need for government to set up monitoring teams that will make sure that the budget is well and carefully implemented to avoid mismanagement of funds.
TABLE OF CONTENTS
TITLE PAGE i
DECLARATION ii
CERTIFICATION iii
DEDICATION iv
ACKNOWLEDGEMENT v
ABSTRACT vii
TABLE OF CONTENT viii
APPENDIX x
CHAPTER ONE: INTRODUCTION
- Background to the Study 1
- Statement of Problem 4
1.3 Objective of the Study 8
- Research Hypotheses 8
1.5 Significance of the Study 9
- Scope of the Study 10
- Organization of the Study 11
CHAPTER TWO
- Literature Review: Empirical or Theoretical Framework 12
2.1. Theoretical Framework 24
2.1.1 Keynesian Theory 24
2.1.2. Balanced Budget Multiplier 28
- Causes of Deficit Financing 31
2.3. Means of Financing a Budget Deficits 33
2.4 Net Benefits and Adverse effects associated a Policy
of Deficit Financing (Budgeting) 36
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design 41
3.2 Model Specification 41
3.3 Estimation Techniques 43
3.4 Sources of Data Collection 46
3.5 Limitations of the study 46
CHAPTER FOUR
4.1 Analysis of Data 48
4.2 Analysis of Result 48
4.2.1 Empirical Results of the Aggregate Model 49
4.1.2 Economic Criteria 50
4.1.3 Statistical Criteria 52
4.1.4 Econometric Criteria (Second-order test) 55
4.3 Discussion of Findings 56
4.4 Policy Implication 56
4.5 Test of Hypotheses 57
CHAPTER FIVE: SUMMARY, CONCLUSION AND
POLICY RECOMMENDATIONS
5.1 Summary of Findings 59
5.2 Conclusion 60
5.3 Policy Recommendations 60
REFERENCES 63
APPENDIX 67
