MACROECONOMIC DETERMINANTS OF SUSTAINABLE ECONOMIC GROWTH IN NIGERIA: ARDL-BASED EVIDENCE

Author(s): Yobo, B. G; Doonu, M; Ojonokpe, A. I; & Barry-Yobo, M. G
Page: 18 - 34
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Publisher: The Creek Journals
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Keywords: Macroeconomic Aggregates, Sustainable Economic Growth, Nigeria, ARDL

Abstract:

This study was conducted to identify the macroeconomic aggregates that can foster and sustain economic growth in Nigeria. It examined the extent of the effects of foreign, public, and domestic private investments, credit to private sector, as well as other macroeconomic aggregates on real gross domestic product (GDP) growth in Nigeria, using the Auto Regressive Distributed Lag (ARDL) model. The data were obtained from the Central Bank of Nigeria (CBN) and World Bank Databases from 1986 to 2022. The results revealed that credit to private sector, domestic private investment, population growth, inflation and exchange rates strongly impact on real GDP growth in Nigeria; inferring that credit to private sector, foreign direct investments, public investment in infrastructure and trade openness contribute positively to real economic growth in Nigeria; while domestic private investments, population growth, inflation and exchange rates retard economic growth. Consequently, the government should encourage policies that stimulate more credit allocation and foreign investments, increase its spending on economic infrastructure; as well as introduce inflation and exchange rate reduction policies to boost and sustain real economic growth in the country.

Citations:

Yobo, B. G; Doonu, M; Ojonokpe, A. I; & Barry-Yobo, M. G "MACROECONOMIC DETERMINANTS OF SUSTAINABLE ECONOMIC GROWTH IN NIGERIA: ARDL-BASED EVIDENCE" Volume 1 Issue 1 Oct, 2025