International Journal of Economics, Finance and Management Sciences

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Relationship between Domestic Debt, Macro-Economic Indices and Viability of the Construction Sector in Nigeria

Received: 14 August 2013    Accepted:     Published: 20 October 2013
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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.

DOI 10.11648/j.ijefm.20130106.12
Published in International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 6, December 2013)
Page(s) 266-272
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Domestic Debt, Construction Industry, Macroeconomic Indices, Nigeria and Viability

References
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[10] Eroke L (2011).Nigeria: Heavy Debt, Job Losses Limiting Construction Industry Http://Allafrica.Com/Stories. Retrieved 14/08/2012
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[12] Gbosi, A.N.(1998). The impact of Nigeria’s domestic debt on macroeconomic environment. First Bank Review Journal.
[13] investorwords: www.investorwords.com/2240/gross_domestic_product. accessed 05/03/2013
[14] Kaming, P. F., Olomolaiye, P. O., Holt, G. D., and Harris, F. C. (1997). ‘‘Factors influencing construction time and cost overruns on high-rise projects in Indonesia.’’ Construction Management Economy. 15(1), 83–94
[15] Millennium Development Goals(2010) Nigeria MDG 2010 Federal Government Report,
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[19] Okonjo-iweala N. (2012)."Nigeria external and Domestic Debt Now is $44B". http://www.thisdaylive.com Retrieved 17/4/2012
[20] Okonjo-Iweala N.(2010).‘Nigeria’s rising domestic debt profile’ http://www.nigerianbestforum.com.Retrieved 26/12/ 2012
[21] Oladipo, F.O. And Oni, O. J.(2012). A Review Of Selected Macroeconomic Factors Impacting Building Material Prices In Developing Countries A Case Of Nigeria. Ethiopian Journal Of Environmental Studies And Management (EJESM).5( 2).
[22] Olaniyan O.(2000) The Effects of Instability on Aggregate Investment in Nigeria. The NigerianJournal of Social and Economic Studies, vol.42, no1. March, pp.23-26.
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[26] Sanusi O. J.(2003). Management Of Nigeria’s Domestic Debt .A Keynote Address Delivered at the 7th Monetary Policy Forum organised by the Central Bank of Nigeria at the CBN Conference Hall, Abuja, 22 May .
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    Ademola Eyitope, OJO, Oluwaseyi Alabi, AWODELE. (2013). Relationship between Domestic Debt, Macro-Economic Indices and Viability of the Construction Sector in Nigeria. International Journal of Economics, Finance and Management Sciences, 1(6), 266-272. https://doi.org/10.11648/j.ijefm.20130106.12

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    ACS Style

    Ademola Eyitope; OJO; Oluwaseyi Alabi; AWODELE. Relationship between Domestic Debt, Macro-Economic Indices and Viability of the Construction Sector in Nigeria. Int. J. Econ. Finance Manag. Sci. 2013, 1(6), 266-272. doi: 10.11648/j.ijefm.20130106.12

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    AMA Style

    Ademola Eyitope, OJO, Oluwaseyi Alabi, AWODELE. Relationship between Domestic Debt, Macro-Economic Indices and Viability of the Construction Sector in Nigeria. Int J Econ Finance Manag Sci. 2013;1(6):266-272. doi: 10.11648/j.ijefm.20130106.12

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  • @article{10.11648/j.ijefm.20130106.12,
      author = {Ademola Eyitope and OJO and Oluwaseyi Alabi and AWODELE},
      title = {Relationship between Domestic Debt, Macro-Economic Indices and Viability of the Construction Sector in Nigeria},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {1},
      number = {6},
      pages = {266-272},
      doi = {10.11648/j.ijefm.20130106.12},
      url = {https://doi.org/10.11648/j.ijefm.20130106.12},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijefm.20130106.12},
      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.},
     year = {2013}
    }
    

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  • TY  - JOUR
    T1  - Relationship between Domestic Debt, Macro-Economic Indices and Viability of the Construction Sector in Nigeria
    AU  - Ademola Eyitope
    AU  - OJO
    AU  - Oluwaseyi Alabi
    AU  - AWODELE
    Y1  - 2013/10/20
    PY  - 2013
    N1  - https://doi.org/10.11648/j.ijefm.20130106.12
    DO  - 10.11648/j.ijefm.20130106.12
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 266
    EP  - 272
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20130106.12
    AB  - 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.
    VL  - 1
    IS  - 6
    ER  - 

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