This study analyzes the effect of external debt burden on growth and poverty in Nigeria within the framework of the error correction model, using annual time series data from 1980 - 2015. The study reveals that economic growth and poverty in Nigeria and their hypothesized determinant are generally I (1) series, with one co-integration equations existing among their linear combinations. Our results show that, the variables in the model, debt overhang, stock of external debt, and public debt service are positively related to increase gross domestic product in model 1, while in model two only external debt stocks is positively related to poverty as proxy with per-capital real gross domestic product in the country. Overall the variables account for 65% and 63% of the variation in gross domestic product and poverty and they are highly significant at 5% as shown by the F-statistic (p < 0.05). The coefficient of the ECM behaved well in both model, having its expected negative sign and is significant at 5%. However, the speed of adjustment is relatively high in model two. In order to increase the level of economic growth and thus reduce the poverty, the following recommendations are made: A conducive macroeconomic policy environment, Improve political and social stability, Reduction of hassle costs and Sound fiscal policy
TABLE OF CONTENTS
Pages
Title Page
Certificationii
Dedication iii
Acknowledgementsiv
Abstractv
Table of Contents vi
List of Tables viii
List of Figures ix
CHAPTER ONE: INTRODUCTION
1.1Background of the Study1
1.2Statement of the Problem3
1.3Objectives of the Study5
1.4Research Questions 5
1.5 Research Hypotheses6
1.6Significant of the Study7
1.7Scope of the Study7
1.8Organization of the study8
1.9Definition of Terms8
CHAPTER TWO: LITERATURE REVIEW
2.1Conceptual and Theoretical Review8
2.2Empirical Review14
2.3Implication of Review on the Current Study19
CHAPTER THREE: THEORETICAL FRAMEWORK AND METHODOLOGY
3.0 Introduction 20
3.1 Model Specification 20
3.2Explanation of variable 22
3.3 Estimation technique and unit root test 23
3.4 Source and measurement of data 23
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1Presentation of Results26
4.2Discussion of Results36
4.3Comparison of Results with Previous Studies39
4.4 Summary of Findings
CHAPTER FIVE: SUMMARY RECOMMENDATIONS AND CONCLUSION
5.1Summary 41
5.2Conclusion42
5.3Recommendations42
5.4Limitations of the Study43
5.5Suggestions for Further Study43
References44
Appendix
The Effect of External Debt Burden on Growth and Poverty in Nigeria (1980 - 2015)
ABSTRACT This study analyzes the effect of external debt burden on growth and poverty in Nigeria within the framework of the error correction model, using annual time series data from 1980 - 2015. The study reveals that economic growth and poverty in Nigeria and their hypothesized determinant are generally I (1) series, with one co-integration... Continue Reading
CHAPTER ONE INTRODUCTION 1.1 OVERVIEW OF THE STUDY The Nigeria economy as we all know is characterized by a number of socio- economic problems. These problems include: import dependence, dependence on a single economic sector, weak industrial base, a low level of agriculture production, a weak private sector, dependence on foreign loan,... Continue Reading
THE IMPACT OF DEBT BURDEN ON ECONOMIC GROWTH OF NIGERIA CHAPTER ONE INTRODUCTION 1.1 OVERVIEW OF THE STUDY The Nigeria economy as we all know is characterized by a number of socio- economic problems. These problems include: import dependence, dependence on a single economic sector, weak industrial base, a low level of agriculture... Continue Reading
7 ABSTRACT This work evolved out of the need to provide an in-depth understanding of the economics of debt in Nigeria. This study aims at analysing the effectiveness of external debt on economic growth within a span of 1981-2010. The broad objective of this work is specified to evaluate the impact of external debt stock and debt servicing on... Continue Reading
ABSTRACT The study investigates the effect of external debt on economic growth in Nigeria. The study however investigates the level of real Gross Domestic Product vis-à-vis external debt, external reserve, debt service and government expenditure. Ordinary Least Square [OLS] is used to estimate four major macroeconomic variables in order to... Continue Reading
Abstract This study investigated the impact of external debt on economic growth in Nigeria for the period 1980-2015. Time series data on external debt stock and external debt service payment was used to capture external debt burden. Other variables such as exchange rate and Foreign Direct Investment where employed. The study set out to test for... Continue Reading
CHAPTER ONE INTRODUCTION 1.1 Background to the Study One of the key macroeconomic objectives of a nation is the achievement of sustainable economic growth. To achieve this goal, every Government requires a substantial amount of capital finance through investment expenditures on infrastructural and productive capacity development... Continue Reading
This work examines the impact of external debt flow on Nigerian economic growth. CHAPTER ONEINTRODUCTION1.1 BACKGROUND TO THE STUDYA very crucial goal for any reasonable government is to attain a sustainable economicgrowth. To attain this vital goal it may have to finance crucial infrastructure projects and to investin development of productivity.... Continue Reading
The study investigated the impact of external debt on economic growth in Nigeria for the period 2006-2015. Time series data on external debt outstanding, interest rate was used to capture external debt burden. The study set out to test the significant relationship between external debt and economic growth in Nigeria. An empirical investigation was... Continue Reading
THE IMPACT OF EXTERNAL DEBT ON ECONOMIC GROWTH OF NIGERIA CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Economic theory suggests that reasonable levels of borrowing by a developing country are likely to enhance its economic growth. When economic growth is enhanced (at least more than 5% growth rate) the economy’s poverty situation is... Continue Reading