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| Title: | Effect of Government Deficits on Net National Savings in Nigeria |
| Author(s): | Momodu A. A, Ewubare D. B, Amadi C. R & Okeme D. E |
| Abstract: | This paper examines the impact of government deficits on net national savings in Nigeria over the period 1981 to 2022 employing the Autoregressive Distributed Lag model. The results show that in the short-run, previous agricultural credit policies negatively affect savings by a large extent, while fiscal transfers have only a positive but small impact when there is one lag. The error correction term suggests that in the short-run there is a tendency to move back to the long-run equilibrium rapidly. In the long run, agricultural credit schemespositively influence net national savings, whereas infrastructure spendingnegatively impacts savings, although marginally. Government borrowing and fiscal transfersdo not significantly affect savings in the long term. The study highlights the importance of agricultural credit schemes for enhancing national savings, while emphasizing the need for careful management of infrastructure spending and government borrowing to ensure long-term economic stability. |
| Keywords: | Fiscaldeficit,quasi-fiscal deficit,inflation rates, debt servicing, and settlement payment on loan g |
| Journal: | Journal of Economic Research and Development Studies Vol 1 No 1 |
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