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 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
Agbetoye, O. & Edet, K (2018). The Effect of External Debt Burden on Growth and Poverty in Nigeria (1980 - 2015). Afribary. Retrieved from https://tracking.afribary.com/works/olumide-project-1
Agbetoye, Olumide, and Kokomma Edet "The Effect of External Debt Burden on Growth and Poverty in Nigeria (1980 - 2015)" Afribary. Afribary, 26 Oct. 2018, https://tracking.afribary.com/works/olumide-project-1. Accessed 23 Dec. 2024.
Agbetoye, Olumide, and Kokomma Edet . "The Effect of External Debt Burden on Growth and Poverty in Nigeria (1980 - 2015)". Afribary, Afribary, 26 Oct. 2018. Web. 23 Dec. 2024. < https://tracking.afribary.com/works/olumide-project-1 >.
Agbetoye, Olumide and Edet, Kokomma . "The Effect of External Debt Burden on Growth and Poverty in Nigeria (1980 - 2015)" Afribary (2018). Accessed December 23, 2024. https://tracking.afribary.com/works/olumide-project-1