Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 312

Article in Press

THE RELATIONSHIP BETWEEN EXTERNAL DEBT AND ECONOMIC GROWTH IN NIGERIA

Ijirshar Victor Ushahemba

  •  Received: 14 June 2018
  •  Accepted: 14 June 2018
Every cake has its deforming tendencies and the handling of such matters in maximizing utility. This paper examined the relationship between external debt and economic growth in Nigeria from the period of 1981-2013. The study used both descriptive and econometric tools. The analysis of unit root was performed on each of the variables incorporated in the model specified and the result showed that, all the variables were integrated at most first difference. The regression analysis (Long run estimates and short run estimates) showed a significant relationship between external debt and economic growth in Nigeria. However, external debt stock impact positively while external debt service impact negatively on the annual growth rate of Nigeria both in the long run and the short run. Thus, external debt is found to be a driver of economic growth if properly managed, it’s servicing rather than repayment is an inhibiting factor to economic growth. The study also recommended that stock borrowed should be effectively managed to avoid debt overhang and the government should adopt advanced technology in the manufacturing sector with the funds in order to make our locally made goods attractive in the international market leading to industrial growth.

Keywords: Debt management, Debt servicing, Debt stock, dependency theory and Economic growth Every cake has its deforming tendencies and the handling of such matters in maximizing utility. This paper examined the relationship between external debt and economic growth in Nigeria from the period of 1981-2013. The study used both descriptive and econometric tools. The analysis of unit root was performed on each of the variables incorporated in the model specified and the result showed that, all the variable