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AUTHOR(S): Peter Chika Uzomba, Kingsley Raphael Ajuzie, Anselm Onyekachukwu Oyem
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TITLE Debt-Revenue Dynamics and Per Capita Consumption in Nigeria and Ghana: A Comparative Analysis |
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ABSTRACT By representing debts-revenue dynamics by debt-GDP ratio (DGR); debt-export ratio (DER); debt-service ratio (DSR); revenue-GDP ratio (RGR); and debt-revenue gap (DRG), the study examined the impact of debt-revenue dynamics on per capita consumption in Nigeria and Ghana from 1981 to 2022; and per capita consumption (PCC) was used as the dependent variable. Utilizing secondary data on the above variables, Keynesian theoretical propositions were adopted as a framework to model the subject matter. Trendy analysis and Auto-regression Distributive Lag (ARDL) to conduct differential short run and bound tests as well as residual diagnostic test. From the analysis, it is revealed that in the short run with respect to debt-GDP, debt-export, revenue-GDP ratios and debt-revenue gap impact more on PCC in Ghana than Nigeria. However, Nigeria outperformed Ghana in terms how debt-service ratio impacted on per capita consumption. The therefore concluded that per capita consumption is more significantly impacted in by debt-revenue dynamics in Ghana than Nigeria. Hence, the study recommended that the Nigerian government should use its debt for more worthwhile endeavors to enable per capita consumption and access to economic opportunities increase in the country. |
KEYWORDS Debt, Revenue, GDP, Per Capita Consumption, ARDL |
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Cite this paper Peter Chika Uzomba, Kingsley Raphael Ajuzie, Anselm Onyekachukwu Oyem. (2025) Debt-Revenue Dynamics and Per Capita Consumption in Nigeria and Ghana: A Comparative Analysis. International Journal of Economics and Management Systems, 10, 158-174 |
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