期刊名称：Petroleum-Gas University of Ploiesti Bulletin : Economic Sciences Series
印刷版ISSN：2284-8576
电子版ISSN：2247-8582
出版年度：2019
期号：2
语种：English
出版社：Petroleum-Gas University of Ploiesti
摘要：The debate on the macroeconomic impact of financing government deficit through debts procured from the bond market has been topical but still unresolved.Theoretical analysis have failed to consistently yield an accepted doctrine on the exchange rate effects of bond financing of deficit while empirical analysis have yielded conflicting results.Hence,this study investigates the relationship between government financing of deficit through the bond market and its effects on the exchange rate in Nigeria over the period 1986–2016.The study makes use of secondary annual time series data to examine the relationship between bond financing and the exchange rate.In this regard,empirical models were formulated to explain the relationship between bond financing and the exchange rate,and the formulated models were estimated using the ARDL bounds test and the Johansen cointegration approaches.The result shows that bond financing has a weak positive relationship with the exchange rate in Nigeria.With regard to the components of bond financing,bond financing through the banking system depreciates the exchange rate while financing by the non-bank public leads to exchange rate appreciation.It was thus recommended that effort should be made by the government to further develop the bond market and encourage greater non-banking public participation in the market.
