摘要：The study investigates the effect of public borrowing on private investment in Nigeria. The study divides public debt into external debt and domestic debt. Johnasen Co-integration test and Vector Error Correction Model (VECM) were used in the analysis. The results show that domestic debt crowds out domestic investment in both short run and long run. However, the result indicates that external debt crowds in domestic investment in the long run. The result concludes with some recommendations that government should strive to reduce her debt profile by improving its revenue base through diversification of the economy, and that any new borrowing is judiciously utilized for the purpose for which it was taken.
关键词：Public Borrowing; Private Investment; Gross Capital Formation; Crowding-Out Effect
