Relationship between Domestic Debt, Macro-Economic Indices and Viability of the Construction Sector in Nigeria
International Journal of Economics, Finance and Management Sciences
Volume 1, Issue 6, December 2013, Pages: 266-272
Received: Aug. 14, 2013; Published: Oct. 20, 2013
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Authors
Ademola Eyitope, OJO, Physical Planning Department, Federal University, Oye Ekiti. Nigeria
Oluwaseyi Alabi, AWODELE, Department of Quantity Surveying, Federal University of Technology, Akure Nigeria
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Abstract
This study aimed at establishing relationship between domestic debt, macroeconomic indices and the viability of the construction sector of Nigeria economy with a view to initiate empirical model for investor’s decision making. Archival data on monetary and fiscal macroeconomic indices such as unemployment rate; exchange rate; inflation rate; interest rate; domestic debt and the contribution of the construction sector to the GDP between years 2001-2011 were collected from Nigeria Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) official gazette. The data were analyzed using multiple regression analysis to establish the relationship that exists between the identified fiscal macroeconomic variables. The analysis revealed that the adjusted R2 of 0.629 or 63.0% of the Viability of the Construction Sector (proxy by Construction industry sector GDP growth rate(GDP ci)) is explained by the selected macroeconomic variables. While this study conclusion avail for long-run behavior of the economy and challenges of investment decision as it affects construction business, it recommended that appropriate guidance and understanding of macroeconomic policy is required by investors and policy makers for decision making and attracting investment to the building and construction subsector of the economy.
Keywords
Domestic Debt, Construction Industry, Macroeconomic Indices, Nigeria and Viability
To cite this article
Ademola Eyitope, OJO, Oluwaseyi Alabi, AWODELE, Relationship between Domestic Debt, Macro-Economic Indices and Viability of the Construction Sector in Nigeria, International Journal of Economics, Finance and Management Sciences. Vol. 1, No. 6, 2013, pp. 266-272. doi: 10.11648/j.ijefm.20130106.12
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