The Size and Sustainability of Nigerian Current Account Deficits
IMF Working Papers, June 1, 2001
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- The Size and Sustainability of Nigerian Current Account Deficits
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Bibliographic details
- Authors: Olumuyiwa S Adedeji
- Published: June 1, 2001
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451851021.001
Summary
- This paper uses an intertemporal model of the current account and macroeconomic indicators to examine the size and sustainability of Nigerian current account deficits over the 1960-97 period.
- The results indicate that the Nigerian economy appeared to satisfy its intertemporal budget constraint during this period.
- However there were years marked by excessive current account deficits.
- The results also support the view that current account deficits accompanied by macroeconomic instability and structural weaknesses can degenerate in to an external crisis.
Key findings
- The Nigerian economy, over 1960-97, appeared to satisfy its intertemporal budget constraint.
- There were individual years within 1960-97 marked by excessive current account deficits.
- Current account deficits combined with macroeconomic instability and structural weaknesses can lead to an external crisis.
Subject areas and keywords
- Subject: Balance of payments, Current account, Current account balance, Current account deficits, Current account surpluses, External debt
- Keywords: capital flight, Current account, current account balance, Current Account balance, Current account deficits, current account determination, current account position, Current account surpluses, current-account sustainability, Excessive current account deficits, exchange rate, external sustainability, foreign exchange, Nigeria, Nigerian current account deficit, optimal current account, present value, structural adjustment, Sub-Saharan Africa, WP
Content in this bundle
- The Size and Sustainability of Nigerian Current Account Deficits - WP/01/87