– this paper aims to investigate the impact of huge external debt with its servicing requirements on economic growth of the nigerian economy so as to make meaningful inference on the impact of the debt relief which was granted to the country in 2006. Economic literature, posits that debt will impact positively on an economy up to a threshold point, beyond which any further increase in debt will bring about a negative impact on the economy (kabadayi, 2012. I) what are the effect of external debt on economic growth of nigeria ie impact of the huge, debt service payment on the various sectors and aspects of the country such as standard of living of the people.
The impact of external debt on economic growth is a debatable issue among scholars since the onset of debt crisis in 1980‟s such as sachs (1989) and krugman (1988) according to world bank external debt means debt owed to non residents, repayable. Public debt and growth manmohan s kumar and jaejoon woo that explores the impact of high external debt on growth via crowding out and debt overhang a number of other studies have looked at the impact of external debt on economic growth in developing economies most of these studies were motivated by the “debt overhang. External debt accumulation has been rising over the years with debt burden indicators increasing steadily in the early 1990s using time series data for the period 1970- 95, the empirical results indicated that external debt accumulation has a negative impact on economic growth and private investment.
External debt servicing has a negative impact on economic growth in ethiopia, through the crowding out effect to pursue this analysis, adapted from the chowdhury (1994) structural macroeconomic. Analyzes the impact of external debt on economic growth of indonesia the method of least squares is used for parameters estimation the main finding of their study shows external debt has a negative impact on economic growth tasos (2014) used time series data from 1980 to. A plethora of both cross-country and country-specific studies have been undertaken to estimate the impact of external debt on growth in developing countries their general findings though revealing need to be confirmed in ghana this paper estimates empirically the impact of external debt on. The external debt crisis adversely affects the economy in terms of the available resources and social and economic growth at the beginning of the 1980s, debt crises hit many less developed. Impact of external debt on economic growth for 9 south american countries over a period of 12 years (1974-1986), and found a statistically significant inverse relationship between the debt burden and economic growth international journal of research in social sciences.
6 between economic growth, external debt and domestic debt in nigeria over the period 1970 to 2011 they found that external debt has a negative impact on the economic performance of. Abstract this work evolved out of the zeal to provide an immense understanding of the nigeria economic of debt the broad objective of this study was to evaluate the impact of external debt on the development of the nigeria economy within the life-span of 1985-2011the models in this study was used to evaluate the developmental relationship between the independent variables and the dependent. Economic growth rate is likely to have a linear negative impact on the public debt-to-gdp ratio, high levels of public debt are also likely to be deleterious for growth, but potentially after a certain threshold has been reached. (2007) comes to the same conclusion that external debt negatively affects economic growth impact of high debt on growth appears to operate through both a strong negative effect on physical-capital accumulation and on total factor productivity (tfp) growth.
Empirical results show that external debt has a significant negative effect on the economic growth in the long run external debt service has a significant positive effect on growth in. Purpose – this paper aims to investigate the impact of huge external debt with its servicing requirements on economic growth of the nigerian economy so as to make meaningful inference on the impact of the debt relief which was granted to the country in 2006. The impact of external debt on economic growth in ghana: a cointegration analysis a plethora of both cross-country and country-specific studies have been undertaken to estimate the impact of external debt on growth in developing countries. Abstract the impact of external debt on economic growth is a debatable issue between scholars since the onset of the debt crisis in 1980’s.
Debt is detrimental to an economy in the long term while the extra liquidity might, in the short term, boost economic growth and activity, this benefit is outweighed by the numerous drawbacks. The study examines external debt burden and its impact on major macro economic variables in nigeria the econometric method of co integration technique was applied to establish the quantitative impact and relative significance of the explanatory. According to rusike (2007) the effects of external debt accumulation on investment and economic growth of a country are always questioned by policymakers and academicians there is no consensus on the role of external debt on growth.
The impacts of external debt on economic growth 494 a study about nigeria’s economy was put down on the paper by ogunmuyiwa (2011, pp 31-33. The first group consists of the studies which claim that external debt has a positive impact on the economic growth the second group comprises the studies which claim that it has a negative effect on the economic growth. The impact of external debt on economic growth of sudan from a period spanning 1978 – 2001 the study showed that export earnings have a significant positive impact while external debt and inflation had negative impact on sudan’s economic growth. The study pin downs vital role of the emerging field of external debt and debt indicators in the ethiopian economy with emphasis on empirical relationship of external debt and economic growth over the period 1963/64-2003/04.
The impact of external debt on economic growth: a comparative study of nigeria and south africa foreign debt: a case study of nigeria” cbn economic and financial review, 34, 523-540 audu, isa (2004) the impact of external debt on economic growth and public investment: the case of nigeria “the external debt problem in africa: a. The impact of external debt on economic growth: a comparative study of nigeria and south africa folorunso s ayadi university of lagos felix o ayadi texas southern university abstract this paper investigates the impact of the huge external debt, with its servicing requirements, on economic growth of the nigerian and south african economies. “huge external debt does not necessarily imply a slow economic growth it is a nation’s inability to meet its debt service payments fueled by inadequate knowledge on the nature, structure and magnitude of the debt in question” (were, 2011. 2001/116 the impact of external debt on economic growth in kenya an empirical assessment the actual service of debt ‘crowded out’ investment the empirical literature is mainly focused on evaluating the impact of external debt on investments rather than on economic growth per se the fourth indirect channel works through the impacts of.