International Journal of Academic Management Science Research (IJAMSR)   Year: 2023 | Volume: 7 | Issue: 3 | Page No.: 100-108 Government Funding Strategies and the Nigerian Economic Competitiveness: Any Linkages Download PDF OSHIOBUGIE, Omolegie Bruno Abstract: This study was concerned with the impact of government funding strategies (GOFS) on economic performance in Nigeria from 1986-2021. The regressor is GOFS measured by external debt sources, domestic debt sources, external reserve sources, and grant funding sources but controlled for both exchange rate and interest rate. Meanwhile, the regressand is economic performance measured by real gross domestic product-RGDP. This study adopted the Autoregressive Distributed Lag Model-ARDL with a view to test if GOFS exhibit both on long run and short-run effect on ECP. This is considered if the unit root test exhibits mixed integration (some stationary at level while others at first differencing). Prior to running the main results, the model to diagnostic test like normality test, Heteroskedasticity test, Ramsey Reset test. The ARDL regression estimate clearly revealed that, both external debt sources and foreign Reserve sources improved the economic performance of Nigeria both in the mean and over time. However, domestic debt sources have negative yet minimal effect on RGDP, both on short and long run. Meanwhile, grant funding sourcing has positive yet minimal effects on RGDP of Nigeria both in the mean and over time. Arising from our findings, we conclude that external debt sources and external reserve sources are the surest way for Nigeria to achieve outstanding economic performance. Consequently, the federal government should maintain an optimal level of external debt sources as one of the economic performance drivers.