An Efficient Estimation Technique for investigating Economic Growth and its Determinants for Nigeria in the Presence of Multicollinearity

This study aimed to investigate economic growth (RGDP) and its determinants such as internal debt (INDT), external (EXDT), interest rate (RINR), exchange (REXR) trade openness (OPEN). Quarterly data from 1986-2021 used for this investigation were extracted Central Bank of Nigeria. Exploratory analysis (EDA) revealed linear dependence RGDP the aforementioned determinants. The EDA variance inflation factor presence multicollinearity caused by INDT. As a result this, ridge regression method was it found that problem addressed with appropriate constant K= 0.29. Hence, technique 0.29 robust predict in Nigeria using explanatory variables under consideration. Thus, served great benefit policy makers provided better understanding terms relationship particular set back EXDT on economy Also, researchers benefited engendered estimation be when established fitting model.