This study is undertaken to verify if the Ricardian Equivalence Hypothesis (REH)
hold for Nigeria and Ghana using annual time-series data of both developing countries
covering from 1970 to 2013; and taking previous empirical studies as its point of reference
and departure. The broad objective of the study is dissected into the following specific
objectives of the study as thus: to examine the effects of budget deficits on interest rates,
inflation, and economic growth in Nigeria and Ghana within the methodological framework
of Seemingly Unrelated Regression (SUR) model and Two-Stage Least Squares (2SLS).
The study employs Eagle-Granger Cointegration test, Augmented Dickey Fuller (ADF) and
Phillips-Perron (PP) tests in estimating the systems equations. Data sourced from World
Bank, IMF - World Economic Outlook, Central Bank of Nigeria, Bank of Ghana and
others, were analyzed using SUR model with several diagnostic and specification tests to
examine the objectives of the study. From the perspective of this study, the empirical
findings demonstrated that the Ricardian Equivalence Hypothesis (REH) hold for Nigeria
and Ghana thereby validating the proposition of the Ricardian School in both developing
nations.
Edeme, R., Nelson, N & Emmanuel, N (2019). Does the Ricardian Equivalence Hypothesis hold for Nigeria and Ghana?. Afribary. Retrieved from https://afribary.com/works/does-the-ricardian-equivalence-hypothesis-hold-for-nigeria-and-ghana
Edeme, Richardson, et. al. "Does the Ricardian Equivalence Hypothesis hold for Nigeria and Ghana?" Afribary. Afribary, 20 Feb. 2019, https://afribary.com/works/does-the-ricardian-equivalence-hypothesis-hold-for-nigeria-and-ghana. Accessed 25 Dec. 2024.
Edeme, Richardson, Nkalu Nelson and Nwosu Emmanuel . "Does the Ricardian Equivalence Hypothesis hold for Nigeria and Ghana?". Afribary, Afribary, 20 Feb. 2019. Web. 25 Dec. 2024. < https://afribary.com/works/does-the-ricardian-equivalence-hypothesis-hold-for-nigeria-and-ghana >.
Edeme, Richardson, Nkalu Nelson and Nwosu Emmanuel . "Does the Ricardian Equivalence Hypothesis hold for Nigeria and Ghana?" Afribary (2019). Accessed December 25, 2024. https://afribary.com/works/does-the-ricardian-equivalence-hypothesis-hold-for-nigeria-and-ghana