The Size and Sustainability of Nigerian Current Account Deficits

Author/Editor:

Olumuyiwa S Adedeji

Publication Date:

June 1, 2001

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Series:

Working Paper No. 2001/087

Subject:

Balance of payments Current account Current account balance Current account deficits Current account surpluses External debt

English

Publication Date:

June 1, 2001

ISBN/ISSN:

9781451851021/1018-5941

Stock No:

WPIEA0872001

Pages:

33

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