The Impact Of External Debt On Nigeria Economy:- Nwabuisi Chioma H

ABSTRACT

This study examined the impact of external debt on the economic growth of Nigeria economy from 1981 through 2017. The principle objective of the study is to evaluate the impact of debt services, interest rate and debt stock on the growth of the economy. The study employed secondary data generated from CBN statistical Bulletin of 2018 edition for the analysis. The study used, unit root test, co-integration, ordinary least square method and error correction method (ECM) for the analysis. The results showed that debt service and interest rate impact negatively and insignificantly on the gross domestic product of the economy, while debt stock established a positive and significant impact on gross domestic product of the economy. The ADF test revealed stationarity among the variables, just as the co-integration test indicated 1 co-integrating equation between Trace and Max-Eigen statistics. The ECM showed that the speed of adjustment from disequilibrium to equilibrium is 52.8% and the term is rightly signed. The study therefore recommends that......