Enquiring into the Sustainability of Nigerian Economy: A Time Series Analysis
Abstract
The study obtains time-series data of three independent variables (Public Expenditure, Debt, and Reserve) and a dependent variable (Gross National Product) between 1971 and 2011 in Nigeria with the aim of verifying the sustainability of the economy. Following Keynesian Model, it formulates hypotheses, estimates parameters, and uses Augmented Dickey-Fullertest to test their significance by using E-View 7. It discovers that Nigerian economy is solvent and sustainable with positive relationship between Public Income, Expenditure and Reserve but negative relationship between the Public Income and Public Debt. It recommends increase and judicious use of external debts and appreciates internalization of public reserves by disbursement of some of the proceeds to the Traditional Financial Institution (TFI) to attain the desired economic objectives of Nigeria. Despite its  applicability, desirability and productivity; the surmountable limitations of its recommendation are fear of corruption and marginalizationamong others.Keywords: Assets, Nigeria, Solvency, Sustainability, Traditional Financial System.References
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