International Journal of Advanced Research and Development

International Journal of Advanced Research and Development


International Journal of Advanced Research and Development
International Journal of Advanced Research and Development
Vol. 2, Issue 5 (2017)

Impact of government domestic borrowing on interest rate


David Prah, Emmanuel Junior Tenakwah

Using data from 2007-2011, the study examined the relationship between interest rate, inflation and domestic debts using linear regression method The results revealed that (57%) of the variation in interest/lending rate can be explained by domestic debts and at an alpha level of 0.05, the researchers failed to reject the H1 and conclude that there is a significance relationship between debts and interest/lending rates. It was concluded that sixty four percent (64%) of the variation in inflation can be accounted for by domestic debts. This conclusion was made base on the R-Square. The researchers further therefore failed to reject the H2 and conclude that there is a relationship between inflation and domestic debts. It is recommended that there should be an improvement in public finances in other to generate a surplus on recurrent operations and also Government must be cognizant of the use of domestic credit by the statutory bodies.
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How to cite this article:
David Prah, Emmanuel Junior Tenakwah. Impact of government domestic borrowing on interest rate. International Journal of Advanced Research and Development, Volume 2, Issue 5, 2017, Pages 86-91
International Journal of Advanced Research and Development