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

Ademola Eyitope; OJO; Oluwaseyi Alabi; AWODELE

doi:doi:10.11648/j.ijefm.20130106.12

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

Ademola Eyitope, OJO, Oluwaseyi Alabi, AWODELE

Published in International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 6)

Received: 14 August 2013 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.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 6)
DOI	10.11648/j.ijefm.20130106.12
Page(s)	266-272
Creative Commons	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), 2013. Published by Science Publishing Group

Keywords

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

References

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[8]	Debt Management office 2012 http://www.dmo.gov.ng retrieved 20/12/2012
[9]	el-Rufai N. (2011). Still on Infrastructure Deficits. Thisday Newspaper, www.onlinethiday.com retrieved 5/8/2011
[10]	Eroke L (2011).Nigeria: Heavy Debt, Job Losses Limiting Construction Industry Http://Allafrica.Com/Stories. Retrieved 14/08/2012
[11]	Foreign Exchange Monitoring & Miscellaneous Provisions Act(1995) No. 17 .
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[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
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[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.
[23]	Omole, A. O. (2001), The Factors that Determine the Cost of Building. Materials Paper presented at a 2- Day National Seminar on "Building Materials --which Alternatives?" at Abuja.
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APA Style

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://article.sciencepublishinggroup.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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Author Information

Ademola Eyitope
OJO
Oluwaseyi Alabi
AWODELE

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Plain Text BibTeX RIS

APA Style

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

Copy | Download

@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://article.sciencepublishinggroup.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}
}

Copy | Download

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  -

Copy | Download