ABSTRACT
This
research work was aimed at ascertaining the impact of external debt on economic
growth in Nigeria. Ex-Post factor research design was adopted for the study.
While data on Gross Domestic Product (GDP). External debt stock and external
debt service payment were obtained from World Bank international debt
statistics, exchange rate data were collected from central bank of Nigeria
statistical Bulletin. 2020. The period of study was 1981-2020 model was
formulated and data were analysed using ordinary least square. Diagnostics test
were conduct using augmented dickey-fuller unit root test, co-integration and
error correction model. The independent variable was GDP, while the explanatory
variables were external debt stock, external debt services payment and exchange
rate. We discovered that external debt had a positive relationship with gross
domestic product at short run, but a negative relationship at long run. Also
while external debt service payment had negative relationship with gross
domestic product, exchange rate had a positive relationship with the paper
concluded that exchange rate fluctuation had positive impact on the Nigeria
economy while external debt stock and debt service payment had negative impact
on the same economy. The study recommended amongst others, that debt management
office should set mechanism in motion to ensure that loans were utilized for
purposes for which they were acquired as well as set a ceiling for borrowing
for sates and Federal Government based on well-defined criteria.
MICHAEL, U (2023). Effect Of External Debt On Economic Growth Of Nigeria (1981-2020). Repository.mouau.edu.ng: Retrieved Sep 08, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-external-debt-on-economic-growth-of-nigeria-1981-2020-7-2
UNIVERSITY, MICHAEL. "Effect Of External Debt On Economic Growth Of Nigeria (1981-2020)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 03 Jul. 2023, https://repository.mouau.edu.ng/work/view/effect-of-external-debt-on-economic-growth-of-nigeria-1981-2020-7-2. Accessed 08 Sep. 2024.
UNIVERSITY, MICHAEL. "Effect Of External Debt On Economic Growth Of Nigeria (1981-2020)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 03 Jul. 2023. Web. 08 Sep. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-external-debt-on-economic-growth-of-nigeria-1981-2020-7-2 >.
UNIVERSITY, MICHAEL. "Effect Of External Debt On Economic Growth Of Nigeria (1981-2020)" Repository.mouau.edu.ng (2023). Accessed 08 Sep. 2024. https://repository.mouau.edu.ng/work/view/effect-of-external-debt-on-economic-growth-of-nigeria-1981-2020-7-2