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Public-Sector Bonds and Economic Growth in Nigeria

Omodero, Cordelia and Alege, P. O. (2022) Public-Sector Bonds and Economic Growth in Nigeria. Montenegrin Journal of Economics, 18 (2). pp. 95-103.

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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.

Item Type: Article
Uncontrolled Keywords: Government bonds, State and local borrowing, economic growth
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: nwokealisi
Date Deposited: 12 Jan 2024 15:32
Last Modified: 12 Jan 2024 15:32

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