Steady state economy in a crowded world: a case of Nigeria

Economic growth, with all of its downsides, is clearly unsustainable in the 21st century. The positive, sustainable alternative is a Steady-State Economy. This study empirically analyze show far the Nigerian economy has converged towards or diverged from steady-state. Unit root, co integration, vector error correction, and Granger causality/block exogeneity Wald tests procedures are applied on annualdata set from 1970-2013.Themodel reveals having a self-adjusting apparatus for rectifying any deviance of the variables from equilibrium. The implication is that Gross Domestic Product will reach its steady-state in approximately 1.5years, interest rate in 20years, depreciation of capital and population will be converging back to their equilibrium in 27-28years, and in 63years respectively. The sluggish rate of the variables convergence can be explained by complex administrative and political processes, therefore, in avoiding afailed state situation, it is expected of government to build strong institutions and processes, while applying some transformative economic and social policies.