External debt pass-through to inflation in Nigeria
Emmanuel A. Asue and James V. Ikyaator
This study examines external debt pass-through to inflation in Nigeria using annual data from 1981 to 2020 based on structural vector autoregressive (SVAR) model. The results reveal that an increase in external debt service leads to a significant depreciation of the exchange rate, which leads to a contemporaneous increase in inflation, while the direct response of inflation to external debt is statistically not significant. The impulse response confirms these results. The forecast error variance decomposition depicts that future values of official exchange rate depend on external debt, inflation and external debt service. The study recommends that the Nigerian government should curtail its acquisition of external loans as much as possible and widen the tax net to ensure that all taxable citizens obey their tax obligations.
Year of publication: |
2023
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Authors: | Asue, Emmanuel A. ; Ikyaator, James V. |
Published in: |
CBN journal of applied statistics. - Abuja : Central Bank of Nigeria, ISSN 2476-8472, ZDB-ID 2854997-1. - Vol. 14.2023, 2, p. 103-131
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Subject: | External debt | external debt service | exchange rate | inflation | Internationale Staatsschulden | International sovereign debt | Inflation | Nigeria | Schuldenmanagement | Debt management | Wechselkurs | Exchange rate | Entwicklungsländer | Developing countries | Wechselkurspolitik | Exchange rate policy | Exchange Rate Pass-Through | Exchange rate pass-through |
Saved in:
freely available
Type of publication: | Article |
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Type of publication (narrower categories): | Aufsatz in Zeitschrift ; Article in journal |
Language: | English |
Other identifiers: | 10.33429/Cjas.14223.5/5 [DOI] |
Classification: | H63 - Debt; Debt Management ; E31 - Price Level; Inflation; Deflation |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10015393772
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