EFFECT OF EXTERNAL DEBT ON ECONOMIC GROWTH OF DEVELOPING COUNTRIES (NIGERIA PERSPECTIVE, 2001-2016)

Greg Onuora Okoye

Abstract


The paper examined the nexus between external debt and economic growth on developing countries using Nigeria as a case study covering a period of 2001 – 2016. The study used time series data in order to capture external debt burden covering the period under review. The study employed ordinary least squares regression method to analyse the data obtained from the CBN statistical bulletin and World Bank. The study found that significant positive relationship existed between economic growth and external debts in Nigeria. Positive significant relationship exist between population access to water and external debts fund; availability of internet use and external debts fund; population accessable to electricity and external debts fund. The study recommended that external debt should be acquired and channeled to economic development only, and adequate and favourable repayment method be strictly followed to avoid negative effects.

Keywords


nexus, external debt, economic growth, ordinary least square method

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References


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