External Debt and Economic Growth Nexus: Empirical Evidence From Nigeria

Sylvester Ohiomu

The American Economist, 2020, vol. 65, issue 2, 330-343

Abstract: This study models external debt and economic growth nexus for policy analysis on public finance and public debt management. The work uses the methodology of group unit root test, auto-regressive distributed lag (ARDL) bounds testing, and co-integrating long-run tests for robust policy recommendations. The results showed that the debt overhang variable (D_Y) and crowding-out effect variable (DS_X) depress the level of investment. This adversely affects economic growth in Nigeria. The study recommends that Nigeria should embark on strict debt management policy, pursue effective debt reduction strategies, and improve investment drives for economic expansion and sustainable development. JEL Classification : C22, C51, E27, H63, H81

Keywords: crowding-out; debt crisis; external debt; ARDL; modeling (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:amerec:v:65:y:2020:i:2:p:330-343

DOI: 10.1177/0569434520914862

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